New Delhi, Aug. 4 -- Crude oil prices retreated sharply from the day's highs in Tuesday's trade as renewed hopes of a peace agreement in the Middle East eased concerns over supply disruptions. Optimism resurfaced after US Treasury Secretary Scott Bessent expressed confidence that a deal to reopen the Strait of Hormuz could be reached soon.

"We're in talks with the Iranians, and I think there is a chance we may have a deal today or tomorrow to open the strait," Bessent told CNBC. Asked whether maritime traffic would face a toll, he replied, "I think it would be freedom of movement."

Bessent's comments restored investor confidence and triggered a sharp reversal in oil prices, which had earlier surged by as much as 3%.

Brent crude, the in...