Brent crude oil prices have fallen sharply, with growing optimism that the United States and Iran are nearing a diplomatic agreement that could restore navigation through the Strait of Hormuz.

Brent crude plunged more than 4%, dropping below $80 per barrel and reversing earlier gains.

US Treasury Secretary Bessent said in an interview, "We could reach a deal today or tomorrow to reopen the Strait of Hormuz for shipping."

Meanwhile, Qatar stated that a resolution proposal aimed at easing tensions is "being circulated among the parties." However, both Qatar and Bessent emphasized that no substantive agreement has been reached yet, and Iran has not signaled progress in negotiations regarding the Strait of Hormuz.

Before the conflict, the Strait of Hormuz handled about one-fifth of the world's oil transport. However, due to attacks on vessels and Iranian threats, heightened safety concerns among shipowners and crews have slowed actual transit through the strait.

Nevertheless, with US President Donald Trump delaying a new round of strikes on Iran to allow more time for diplomatic negotiations, international oil prices have fallen significantly from last month's highs.

Helge Andre Martinsen, a senior oil analyst at DNB Bank ASA, said that Qatar's latest signal regarding a draft agreement appears to be part of a joint effort to restore navigation through the Strait of Hormuz, while leaving the "more difficult issues" for later negotiations.