U.S. crude oil falls below $80 as Iran discusses Strait of Hormuz with Saudi Arabia and Oman
Speaking to reporters aboard Air Force One on Monday en route to Michigan, Trump dismissed suggestions that the U.S. was running short on weapons.
JaneWalter
Oil tankers and cargo vessels remain anchored off Port Sultan Qaboos on June 21, 2026 in Muscat, Oman.
Elke Scholiers | Getty Images
Oil prices fell Tuesday as Iran held discussions about the Strait of Hormuz with Saudi Arabia and Oman.
Brent crude futures, the international benchmark, fell by 4.8% to close at $84.09 a barrel. U.S. West Texas Intermediate dropped by 4% to settle at $79.26 a barrel.
Iran's top diplomat Seyyed Abbas Araqchi hosted separate calls with his Saudi and Omani counterparts, according to a foreign ministry statement posted on Telegram.
They discussed the need to "eliminate the insecurity imposed on the Strait of Hormuz caused by the aggressive actions of the United States," according to the statement.
The pause in fighting between the U.S. and Iran appeared to hold Tuesday, raising hopes for a de-escalation in the Middle East conflict that has upended energy supplies. Tehran has rejected reports that it has agreed to a 10-day ceasefire with the U.S. but there has been a temporary pause in hostilities.
That follows reports of diminished U.S. munitions. President Donald Trump, who on Friday told Axios that he was considering a "massive attack" on Iran, later set those plans aside amid arms stockpile concerns, The New York Times reported.
Speaking to reporters aboard Air Force One on Monday en route to Michigan, Trump dismissed suggestions that the U.S. was running short on weapons, saying the military had "plenty" of ordnance.
The Commonwealth Bank of Australia said on Tuesday that recent decline in oil prices reflects easing concerns over an immediate escalation between the U.S. and Iran, but cautioned that risks to global energy supplies remain elevated.
While "a pause in US Iran hostilities appears to have weakened expectations that the conflict will escalate to include significant attacks on civilian and energy infrastructure," the bank said in a note, warning that disagreements over the vital Strait of Hormuz shipping lane "could see hostilities reignite."
Analysts at Goldman Sachs said in a Tuesday note that Brent crude should moderate to $80 a barrel by year-end "if Hormuz fully reopens" by the final three months of the year.
"But Red Sea disruptions and attacks on Saudi oil infrastructure may pose a new source of upside risk for crude and refined products prices," the analysts added.
