Oil prices fall on hopes Strait of Hormuz could reopen

Oil prices fell to a three‑week low on Tuesday as senior US officials raised hopes of a deal with Iran to reopen the key Strait of Hormuz waterway.

US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent announced that talks had progressed to allow shipments to potentially resume as soon as this week.

The cost of a barrel of Brent crude, the global benchmark for oil prices, fell by almost 5% to under $80 on the news of supply disruptions potentially being eased.

However, previous negotiations between the US and Iran over the conflict have kept the oil market volatile, with fuel prices hitting higher levels at the pumps.

Brent crude fell to its lowest level since 13 July, and West Texas Intermediate dropped more than 5% to $76 a barrel.

Rubio said there had been progress in discussions on getting more ships through the Strait with Iran and Oman, but he denied finality yet, hoping it would happen soon.

Bessent told CNBC that a deal could be agreed as soon as Tuesday or Wednesday, offering the possibility of ‘freedom of movement’ for ships passing through.

No details of what a potential deal may look like have been released, but the prospect of reopening the Strait could ease a key bottleneck for global oil trade.

The Strait of Hormuz, which handled about one‑fifth of global daily oil and liquefied natural gas supplies before late February, remains central to U.S.–Iran negotiations.