Oil Prices Fall 6% on US-Iran Hope

Oil Prices Fall 6% on US-Iran Hope

Oil prices declined for a second consecutive session on Tuesday as market participants absorbed remarks from Treasury Secretary Scott Bessent that a deal to reopen the Strait of Hormuz between the United States and Iran was imminent. Brent crude futures for October settled down 6% at $78.72 a barrel, while U.S. West Texas Intermediate (WTI) September contracts fell 5.8% to $75.65 a barrel.

Ticker movements reflected the broader sell‑off: Chevron (CVX) dropped 1.45%, Exxon Mobil (XOM) slipped 0.70%, BP fell 4.11%, Brent (LCO) lost 6.08%, and WTI (CL) rose modestly 0.27%.

Bessent told CNBC that a deal could be reached “today or tomorrow,” prompting optimism that the strait, which carries roughly 20% of global oil and LNG shipments, may reopen. Qatar, acting as a regional mediator, said diplomatic efforts continue and that draft language for a possible agreement is being circulated among negotiators, although no direct talks have yet been scheduled.

President Donald Trump confirmed that discussions with Iran were underway and warned Tehran that it faced a “last chance” to reach a settlement. Iranian foreign‑ministry spokesperson Esmaeil Baqaei countered that Iran was not in direct negotiations with the United States and was instead coordinating with Oman on an alternative vessel‑traffic route through the strait.

Analyst Danni Hewson, head of financial analysis at AJ Bell, noted that Brent had “plummeted…circling close to $80 a barrel” and emphasized the fragility of any diplomatic breakthrough given the history of price spikes during the conflict.

U.S. crude exports in July fell to 3.66 million barrels per day, the lowest level in eight months, as increased Middle‑Eastern supply following a brief June cease‑fire reduced demand for American crude.

The combination of geopolitical optimism and weakening U.S. export volumes drove the sharp price declines observed across major oil benchmarks.