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Oil drops as traders price in a potential U.S.-Iran deal
WTI fell 5.9% to about $75.6 per barrel and Brent slid 5.5% to around $79.2, with hopes for Strait of Hormuz reopening boosted despite limited shipping data.
Oil prices slid sharply Tuesday as traders again priced in the prospect of a U.S.-Iran agreement that has not yet been signed. West Texas Intermediate was around $75.64 per barrel shortly before 2 p.m. ET, down $4.70, or 5.85%, while Brent fell $4.61 to $79.16, both touching three-week lows.
Oil markets saw renewed optimism after statements from U.S. officials, according to OilPrice. Treasury Secretary Scott Bessent said a deal could come Tuesday or Wednesday, Secretary of State Marco Rubio said talks involving Iran and Oman showed progress, and Qatar said diplomatic efforts were continuing.
President Donald Trump said an agreement to reopen the strait and denuclearize Iran is imminent. Iran, however, denied direct talks with Washington and said it is negotiating through mediators in Oman, while also seeking control over inbound shipping and visibility over outbound traffic.
The report noted that actual shipping data provided little support for the enthusiasm, with just six vessels tracked moving through Hormuz on Monday, down from seven a day earlier, and traffic through Bab el-Mandeb largely unchanged. OilPrice also cited a cargo vessel struck near Oman, adding to uncertainty around the negotiations.
Latest closeBrent $83.63 ▼7.2%