WTI crude falls over 3% after Treasury Secretary indicates a potential agreement to reopen the Strait of Hormuz this week.
Oil prices extended losses after US Treasury Secretary Scott Bessent said a deal to reopen the Strait of Hormuz could be finalized as soon as Tuesday or Wednesday. The comments fueled expectations of eased supply disruptions in the critical shipping lane.
West Texas Intermediate crude settled 3.29% lower at $76.20 per barrel, after touching a three-week low of $75.68 earlier in the session. Markets had already been pricing in reduced geopolitical risk premiums amid signs of progress in negotiations.
Bessent also suggested energy prices would likely stabilize following the resolution, though no specific timeline was provided for broader market impacts.