Oil prices fell to a three-week low on Tuesday as senior US officials expressed hopes for a deal with Iran to reopen the key waterway through the Strait of Hormuz, writes the BBC. US Secretary of State Marco Rubio and Treasury Secretary Scott Besant announced that talks had advanced to allow for the possible resumption of supplies as early as this week, reports Focus.
The price of a barrel of Brent crude oil fell by almost 5% to below $80, and the price of US West Texas Intermediate fell by more than 5% to $76 a barrel. These are the lowest levels of crude oil since July 13.
But the failure of previous talks in recent months to de-escalate the conflict between the United States and Iran has led to an unstable oil market, with drivers ultimately being hit by higher fuel prices at gas stations, the BBC commented.
Qatar, which is a key mediator between Washington and Tehran, said it was continuing its efforts with other mediators to achieve a diplomatic solution to the war, but admitted that direct talks were not currently planned.
US President Donald Trump said earlier today that the Strait of Hormuz would be opened "very soon, or (the Iranians) will be hit very hard", reported Agence France-Presse, quoted by BTA.
"We are having very good talks", he added in an interview with the television "Fox News" the American head of state, who is on a visit to the state of California. He assured that Iran wants to reach an agreement.
“I have time“, the Republican president also said regarding this conflict, which has been going on for more than five months.
According to the website “Axios“, which cites “regional sources“, a temporary 60-day agreement is being discussed to organize the passage through the strait between the Persian Gulf and the Gulf of Oman.
This preliminary agreement, which could be announced as early as today, provides, according to “Axios”, that all ships entering the strait will use a northern route in Iranian waters, and all those leaving — a southern route in Omani waters, without fees or right of passage.
During these sixty days, pending a final agreement, the middle part of the strait will be demined. However, the compromise has not yet been ratified, notes Agence France-Presse.