Oil prices plunged to $89 a barrel Wednesday following reports that the proposed Iran-US peace deal would see the Strait of Hormuz being reopened in just one month.
U.S. crude oil prices fell about 6% Wednesday on a report Iran would restore traffic through the Strait of Hormuz as part of a framework deal with the U.S.
Investors remained optimistic over Iran peace hopes despite mounting tensions following U.S. strikes in the Strait of Hormuz.
Ceasefire stability allows energy prices to consolidate on fundamentals amid strong US production and healthy storage. WTI faces strong downside pressure below $92, Brent retests channel floor, and NatGas builds bullish structure.
Oil prices pulled back from recent highs on Wednesday, erasing some of the previous day's 4% gain as traders sought clarity on complex negotiations between Iran and the U.S. after renewed hostilities set back efforts to reopen the Strait of Hormuz.
Oil declined in early Asian trade as traders weigh the prospects of a U.S.-Iran deal.
Piper Sandler expects disruption across the Strait to persist for months. The bank warns reduced commercial traffic could push oil prices to new highs for the year.
Benoit Gervais and Stewart Glickman break down how the Iran conflict is impacting the global energy complex and why oil supply risks will drive prices higher. They discuss concerns over potential barrel losses, long-term energy premiums, and what investors should watch next in the energy sector.
Iran said Tuesday that it would retaliate against violations of its ongoing ceasefire agreement, after US Central Command on Monday confirmed that it had launched strikes on Iranian vessels.
Crude oil markets are heating up again, as the talks are in jeopardy. US attacks on a port, and the Iranian delegation demanding a release of $12B now take front and center stage.
Brent crude climbs above $98 as fading Iran-US peace hopes reignite oil ETFs like USO amid supply fears.
Oil rebounded as fresh US military strikes in Iran clouded the outlook for an interim deal between Tehran and Washington to reopen the Strait of Hormuz. Stephen Stapczynski reports.