Oil prices tumble for third straight session on US-Iran dialogue optimism; WTI hits $79

Global oil prices fell for a third straight trading session Tuesday as the United States continued to hold off on airstrikes against Iran.

Brent crude futures for September delivery settled at $84.09 a barrel on the ICE Futures Exchange, tumbling 4.8% from the previous session. West Texas Intermediate futures for September delivery closed at $79.26 a barrel on the New York Mercantile Exchange, down 4.1%.

Oil prices have been in a sustained slide since July 24, hitting their lowest level in roughly two weeks for Brent crude — the weakest since July 13. The three-session decline has pushed Brent down more than 16%.

President Donald Trump, in a phone interview with Fox News on Tuesday, said Iran would deny that nuclear talks had taken place, "but that's all we discuss." "We've been having very good conversations," he said. However, Trump again threatened to destroy bridges, power plants and other critical infrastructure if a deal is not reached.

Reuters reported that Oman had recently proposed to Iran a joint management framework for the Strait of Hormuz, including a voluntary toll system. Oman also proposed dividing vessel traffic through the strait into two separate lanes.

Iranian Deputy Foreign Minister Kazem Gharibabadi told state television Tuesday that Iran had rejected Oman's proposal for shared management of the Strait of Hormuz.

Citing data from shipping analytics firm Kpler, Reuters said 28 vessels passed through the Bab el-Mandeb Strait in the Red Sea on Monday — a four-day high. Traffic through the Strait of Hormuz, however, still remained at depressed levels.