Oil prices tumble as hopes rise for free flow through Hormuz
US officials say a deal is just weeks away as talks with Iran reach a new stage that could open the narrow Strait of Hormuz – a key artery for one‑fifth of the world’s oil supply – to commercial shipping again.
Brent crude, the global benchmark, fell almost 5% to below $80 a barrel after the news, while U.S. West Texas Intermediate slipped under $76 a barrel. Both contracts dropped to their lowest point since mid‑July.
“There’s been progress made in those talks, but not finality yet,” Secretary of State Marco Rubio told reporters at the State Department. Treasury Secretary Scott Bessent added that a deal could be reached by tomorrow or the next day, and that freedom of movement would be restored – potentially meaning no extra charges for ships passing through.
The Strait of Hormuz has long been a flashpoint in U.S.‑Iran relations. Prior to February’s escalation, the waterway handled about one‑fifth of the world’s daily oil and liquefied natural gas traffic, making any disruption a major threat to global markets.
While no final terms were released, analysts say the prospect of eased tension could cool volatility in fuel prices, relieve pressure on gas stations, and reduce uncertainty for energy‑seeking nations.
Stay tuned for updates on the negotiations and how they might reshape the global oil scene.
