'Hormuz deal with Iran today' Oil slips below $80 on truce hope

Oil prices fell by over 5% on Tuesday to a three-week low after comments by mediator Qatar and US treasury secretary Scott Bessent raised hopes for a diplomatic resolution to the West Asia conflict, which would improve oil flows through the Strait of Hormuz.

Front-month brent futures fell 5.24% to trade at $79.38 a barrel at 11:00 PM after hitting a session high of $86.33.US West Texas Intermediate, meanwhile, was trading 5.46% lower, at $75.98 a barrel, after touching a session high of $82.33.

Bessent said that the US could reach a deal with Iran to reopen the Strait of Hormuz by Wednesday, adding that this would stabilise energy prices.


"We are in talks with the Iranians, and I think there is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalised position in this conflict," Bessent said on Tuesday in an interview with CNBC.

Asked if a deal would allow Iran to charge a toll on shipping using the strait, Bessent said: "I think it would be freedom of movement."

Qatar foreign ministry spokesperson Majed Al Ansari said efforts to secure a diplomatic resolution to the conflict were continuing, with mediators including Qatar, Pakistan and Oman coordinating closely to facilitate negotiations and exchange draft proposals between the two sides.

Goldman Sachs expects Brent to remain in an $80-$90 a barrel range until there is either confirmation of a new US-Iran agreement or a significant escalation in attacks and targets.

Iran, Oman talk levying service charge

Meanwhile, Iran and Oman have made progress towards a deal to reopen Hormuz, a potential breakthrough that could help wind down the war, regional officials said on Tuesday.

Under the emerging agreement, ships would enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman, with service fees charged for providing security and preserving the maritime environment, two regional officials told AP.

Hormuz remains dangerous for vessels. On Tuesday, the UK Maritime Trade Operations agency flagged an incident 20 nautical miles (37 km) northeast of Oman's Al Khasab area, after a cargo vessel broadcast that it had been hit by an unknown projectile.

In the Red Sea, six Saudi-flagged supertankers changed course in the Gulf of Aden recently for southern Africa, while two tankers laden with Saudi oil crossed the Bab el-Mandeb Strait, shipping data showed on Monday.