[International Oil Prices] 'Diplomacy Instead of War' Sends Prices Tumbling More Than 3%; Brent Falls Below $90

[Financial News]  

International oil prices plunged more than 3% on the 25th (local time).
Prices fell sharply after the United States announced sweeping additional economic sanctions on Iran the previous day, easing fears of a new war, and after Iran and Oman agreed to continue diplomatic efforts to reopen the Strait of Hormuz.
Brent Crude Oil for October delivery, the global benchmark, dropped $3.59, or 3.90%, from the previous session to $88.58 per barrel.
West Texas Intermediate crude oil (WTI), the U.S. benchmark, also fell $2.65, or 3.12%, to close at $82.36 per barrel.
Oil prices reversed sharply lower after Scott Bessent, the United States Secretary of the Treasury, announced sweeping additional 'secondary sanctions' on Iran the previous day. Markets focused on the fact that the United States had turned to economic sanctions instead of war.
Optimism that diplomacy could resolve the issue strengthened after Iran and Oman agreed on the same day to work toward reopening the Strait of Hormuz. The two sides also agreed to discuss opening a temporary transit route and removing mines from the strait.

[email protected] Song Kyung-jae Reporter