Crude Oil Futures Slide 2.5% as Weak US Data and Diplomacy Hopes Pressure Markets

U.S. crude oil futures tumbled 2.5% on Tuesday amid reports of potential diplomatic compromise talks regarding the U.S.-Iran conflict, even as diplomats later walked back the immediacy of a deal. Energy prices retreated alongside a broader market reaction to disappointing U.S. macroeconomic housing data, which showed September housing starts dropped 5.2% to an annualized 1.221 million units and pending home sales plunged 7.3%. The resulting economic softness also pushed the benchmark 10-year Treasury yield down 2.1 basis points to 5.115% and sent the U.S. Dollar Index to a 2.5-week low.