Qatar, Another Mediator, Said No Direct Talks Were Planned

Oil prices fell to a three-week low on Tuesday on hopes that the key Strait of Hormuz could reopen, with top US officials signaling progress in talks with Iran. Brent crude dropped about 5% to below $80 a barrel, while US light crude fell more than 5% to $76, both hitting their lowest levels since July 13. US Secretary of State Marco Rubio said talks with Iran and Oman on increasing ship transits had advanced, telling reporters, "We've made progress but haven't reached a final conclusion yet. We hope it happens very soon.

Treasury Secretary Scott Bessent told CNBC, "We have a chance to reach a deal today or tomorrow to open the strait and move to a more normalized situation. Iran denied negotiating with Washington, saying it was in contact with mediator Oman, which reported positive discussions on a new mechanism for vessels. Qatar, another mediator, said no direct talks were planned.

The strait, which handled about a fifth of global oil and LNG supply before fighting began in late February, has seen most traffic halted by Iran, with the US imposing a naval blockade on Iranian ports. A separate blockade by Iran-backed Houthis on Saudi ports in the Red Sea has been in place since July 20, with attacks on ships increasing. On Tuesday, an Indian-flagged vessel sank near Yemeni waters, with all 14 crew rescued.

Analysts say threats to oil tankers are at their highest since the war began. Fuel prices have risen globally, with UK petrol averaging £1.60 a liter and US gasoline above $4 a gallon, diesel around $5.40. Oil majors like BP, Shell, Chevron, and Exxon Mobil have posted record profits. President Donald Trump said Monday that Iran has a "last chance" to resume commercial shipping in the strait, adding he had halted comprehensive strikes to restart talks. US stocks rose Tuesday on the oil price drop and AI-focused earnings.