Oil Prices Plunge Amid Reported Progress in US, Iran Talks
Brent crude and West Texas Intermediate fell as traders bet a reopening would ease supply risks, while U.S. gas prices stayed elevated.
- Oil prices plunged around midday Wednesday on reports of a U.S.-Iran agreement to reopen the Hormuz Strait, with Brent crude reaching $101.75 and West Texas Intermediate hitting $95.60.
- The months-long closure of the Hormuz Strait has rattled shipping supply chains, pushing the national average gas price to about $4.53 per gallon according to AAA.
- President Donald Trump offered 92 million barrels from the Strategic Petroleum Reserve to oil companies, though Rystad Energy chief oil analyst Paola Rodriguez-Masiu warned of a six-to-eight-week lag before real-flow normalization.
- In a Wednesday morning Truth Social post, Trump wrote that the "highly effective Blockade" will end if Iran adheres to the agreement, warning that "the bombing starts" if they fail to comply.
- Congressional Democrats are calling for a gas tax holiday, but the White House told Axios it is not under consideration, as a Bipartisan Policy Center report warns it could add $12 billion to the federal deficit.
19 Articles
19 Articles
Against the backdrop of progress in negotiations between the US and Iran.
Oil prices fell about 5 percent on Thursday, as renewed hopes for a peace deal between the United States and Iran that could gradually reopen the Strait of Hormuz, Reuters reported. Thursday's decline followed a more than 7 percent drop to a two-week low on Wednesday.
World oil prices drop 5 percent on hopes over US-Iran talks
World oil prices drop 5 percent on hopes over US-Iran talks Global oil prices fell more than five percent on Thursday, amid hopes that ongoing talks would bring an end to the war on Iran. International benchmark, Brent North Sea crude, shed 5.1 percent to $96.06 a barrel. The main US contract, West Texas Intermediate, lost 5.5 percent to $89.87.
Oil drops on renewed hopes for US-Iran talks
The price of crude oil fell on signs of progress in US-Iran peace talks, but US gasoline prices continued to rise, with President Donald Trump running out of moves to lower them. If negotiators do manage to agree on the one-page memo that is reportedly under discussion, it could still be at least another month before the US lifts its naval blockade and anything like normal oil tanker traffic can resume through the Strait of Hormuz. “A six-to-eig…
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