WTI and Brent crude benchmarks fell over 5% as traders bet on a potential U.S.-Iran agreement easing supply constraints.
Oil prices extended losses Tuesday, with West Texas Intermediate sliding $4.70 to $75.64 per barrel and Brent down $4.61 at $79.16. Both hit three-week lows as markets priced in optimism over a possible U.S.-Iran nuclear deal, despite no formal agreement being reached.
The decline follows comments from U.S. officials suggesting progress in negotiations, including potential reopening of the Strait of Hormuz. Prior sessions had seen muted movement, with traders awaiting concrete developments. Comparable periods of geopolitical speculation have historically driven short-term volatility.
No immediate market reaction beyond the price drop was reported, though analysts warn of potential reversals if talks stall.