Brent crude prices dropped sharply on Tuesday following comments from U.S. Treasury Secretary Scott Bessent, who indicated that a deal with Tehran could be reached by Wednesday to reopen the Strait of Hormuz.
The prospect of resolving the standoff at the world’s most critical oil transit chokepoint triggered a rapid repricing of supply risk across energy markets.
The development follows earlier reports that a record 19 million barrels of oil flowed through the Strait on Monday, according to statements by U.
The sell-off in oil was accompanied by a broad rally in global equities, with major stock indices hitting record highs as investors priced in the de-escalation of geopolitical tensions.
The market reaction underscores the heavy premium that had been embedded in energy prices due to fears of prolonged disruption in the Gulf region.
The development follows earlier reports that a record 19 million barrels of oil flowed through the Strait on Monday, according to statements by U.S. President Donald Trump.
This surge in throughput suggested that shipping activity was already normalizing ahead of any formal agreement, further fueling optimism among traders.