Oil prices fell on Tuesday after U.S. Treasury Secretary Scott Bessent told CNBC that he believes a deal to reopen the Strait of Hormuz could be reached "today or tomorrow," reports UNN citing CNN.
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Brent crude oil, the global benchmark, fell more than 5% to $79.50 per barrel, dropping below the $80 mark for the first time since July 13. The latest decline in Brent was 4%, to $80.50 per barrel, partially offsetting losses.
WTI crude oil, the U.S. benchmark, fell more than 5.5% to $75.77 per barrel, also reaching its lowest level in three weeks. The latest decline in WTI was 4.3%, to $76.90 per barrel, partially offsetting losses.
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Traders reacted to Bessent's comments, although it remains to be seen how tensions between Washington and Tehran will develop. According to Qatar's Ministry of Foreign Affairs, efforts to resolve the conflict are at a "very advanced stage."
Traders are closely monitoring shipping from the Strait of Hormuz to assess whether oil flows are resuming. Shipping industry analysts are less optimistic than Bessent.
Oil prices have fluctuated over the past few months. Last month, Brent crude surged to $100.69 per barrel on July 23, then declined in recent weeks amid rising and then easing tensions.
On Tuesday, stocks rallied sharply, with the Dow Jones Industrial Average rising 800 points, or 1.5%. The S&P 500 gained 1.2%, and the tech-heavy Nasdaq rose 1.7%.
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