Oil prices drop on hopes of Mideast conflict resolution

Oil prices fell more than 5 percent on Tuesday to a three-week low after comments by Qatari and US officials raised hopes for a diplomatic resolution to the Iran war that could improve oil flows through the Strait of Hormuz. Brent crude futures were down USD 4.44, or 5.3 percent, to USD 79.33 a barrel by 1:17 p.m. ET (1717 GMT). US West Texas Intermediate futures dropped USD 4.52, or 5.6 percent, to USD 75.82 a barrel. Both contracts hit their lowest prices since July 13. US Secretary of State Marco Rubio said on Tuesday there was progress in talks with Iran and Oman about moving more ships through the strait, but a final agreement was yet to be reached.