US Treasury Secretary Bessent says Hormuz deal nears as Oil prices tumble
US Treasury Secretary Scott Bessent said in a CNBC interview on Tuesday that a deal with Iran to reopen the Strait of Hormuz could be reached as soon as Tuesday or Wednesday. He added that he expects energy prices to "settle back down".
US Treasury Secretary Scott Bessent stated in a CNBC interview that an agreement with Iran regarding the reopening of the Strait of Hormuz might be reached by Tuesday or Wednesday. He further predicted a return to more stable energy prices. Following his remarks, the markets experienced a swift response. West Texas Intermediate (WTI) Oil prices experienced a decline of 3.29%, settling around $76.20 per barrel, following a drop to a three-week low of $75.68.
WTI Oil, a type of Crude Oil, is traded on international markets and is known for its low gravity and sulfur content, making it easily refined and considered high quality. The price of WTI Oil is significantly influenced by factors such as global growth, political instability, OPEC decisions, and the US Dollar's value. The weekly Oil inventory reports by the American Petroleum Institute (API) and the Energy Information Agency (EIA) also have an impact on WTI Oil prices.
OPEC's production decisions, particularly when they decrease quotas, can lead to a tightening of supply and an increase in Oil prices. The US Dollar's performance, due to its role in Oil trading, and the inflationary risks associated with higher oil prices, both contribute to the Federal Reserve's potential interest rate hike by 2026.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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