Reports of an impending preliminary peace agreement between the United States and Iran have triggered a steep decline in global oil markets. By 10:42 GMT, Brent crude had experienced a sharp drop of $10.07 (9.2%), settling at $99.80 per barrel. Similarly, US West Texas Intermediate (WTI) plummeted by $10.79 (10.6%) to reach $91.48.
Both major benchmarks suffered their most significant one-day absolute losses in a month, pushing prices to a two-week low following a 4% decrease during the previous session.
Previously, oil prices had been surging—with Brent hitting a peak last week unseen since March 2022. This upward pressure was driven by the blockage of marine traffic through the Strait of Hormuz, a disruption that began with the conflict in February. The maritime bottleneck forced refineries to tap into global reserves to cover supply gaps. Consequently, market sources citing data from the American Petroleum Institute reported a third consecutive weekly drop in US crude, distillate, and gasoline stockpiles.
