Oil prices are cratering on renewed optimism for a US-Iran peace

Oil prices fell for a second straight day on Tuesday as renewed optimism around potential US-Iran talks weighed on markets. Brent slid nearly 16% over two days to trade around $83 a barrel, while West Texas Intermediate dropped about 12% in the same period, falling below $80. The pullback extended Monday’s decline after Brent rose above $100 earlier this month. Analysts pointed to a pause in fighting over the weekend that appeared to hold, alongside discussions involving Iran, Saudi Arabia and Oman about reopening the Strait of Hormuz. Volatility remains high as investors look ahead to the Fed’s July 29 rate decision and major earnings, including Meta and Microsoft.