WTI Drops 4.6% Below $90 on Report of U.S.-Iran Hormuz Traffic Deal
Updated
Updated · CNBC · May 27
WTI Drops 4.6% Below $90 on Report of U.S.-Iran Hormuz Traffic Deal
12 articles · Updated · CNBC · May 27
West Texas Intermediate fell 4.6% to $89.55 a barrel, while Brent slid 3.75% to $95.85 after Iranian state TV reported a draft U.S.-Iran framework tied to restoring Strait of Hormuz traffic.
The draft says Tehran would return commercial shipping through Hormuz to pre-war levels within one month, manage traffic with Oman, and see U.S. forces withdraw from nearby waters while lifting the naval blockade.
That report extended an earlier oil selloff as a temporary U.S.-Iran cease-fire held, with traders betting a reopening of the chokepoint would ease supply risks after days of military escalation.
Skepticism remains over how fast flows can recover: ADNOC chief Sultan Ahmed Al Jaber said even an immediate end to the conflict would take at least four months to restore volumes to 80% of normal.
As military forces continue to clash, is the market's optimism for a lasting US-Iran peace deal misplaced?
What concession will break the deadlock over Iran's nuclear program and control of the Strait of Hormuz?
Can the US military's 'Project Freedom' secure the Strait of Hormuz without escalating into a full-scale war?