Oil falls over 5% as Iranian TV says it has seen draft deal with U.S. to reopen Hormuz
Oil prices dropped over 5% following reports from Iranian state TV about a potential draft agreement with the U.S. regarding the Strait of Hormuz. This news, along with increased tanker traffic, overshadowed concerns about recent tensions and military actions in the region. Analysts suggest that while there is progress in negotiations, the market remains cautious due to ongoing restrictions on oil flows.
- ▪Oil prices fell over 5% after Iranian state TV reported a draft agreement with the U.S.
- ▪Brent crude futures dropped to US$95.92 a barrel, while U.S. West Texas Intermediate crude fell to US$88.70.
- ▪Analysts noted that the market is reacting to headlines, with no imminent deal confirmed.
Opening excerpt (first ~120 words) tap to expand
ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountOil extended losses on Wednesday, falling over 5 per cent after Iranian state TV said it had seen a draft of an initial, unofficial framework for an agreement with the United States on ending their conflict and reopening the Strait of Hormuz.The report, plus a pick-up in tanker traffic through the strait, outweighed Iran’s earlier comments that the United States had violated a ceasefire and a tanker on Tuesday reporting an explosion off the Oman coast.Brent crude futures fell US$3.66, or 3.7 per cent, to US$95.92 a barrel by 10:05 a.m. ET, while U.S. West Texas Intermediate (WTI) crude lost US$5.19, or 5.59 per cent, to US$88.70.The losses more than erased Brent’s gains from Tuesday.
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