Crude Futures Fall on US-Iran Deal Progress

Author: Emily Fairchild

Crude Oil Futures Decline on US-Iran Deal Optimism

Crude oil futures retreated on optimism about a potential US-Iran agreement that could reopen the Strait of Hormuz to tanker traffic. However, the market remains cautious amid conflicting statements.

According to Ahmad Assiri of Pepperstone, "With the two sides still publicly contradicting each other on basic facts, the distance to a binding agreement is considerable." The main concern for energy markets is uncertainty surrounding the strait.

Assiri noted, "A verified deal delivers meaningful downside in crude; a breakdown or simply a prolonged stalemate keeps the geopolitical risk premium firmly embedded."

WTI was down 5.1% at $91.67 a barrel, while Brent fell 4.9% to $98.46.

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