Oil Extends Decline as Iran State TV Says It Saw Draft Hormuz Reopening Deal
Oil prices extended losses on Wednesday after Iranian state television said it had seen an initial (unofficial) draft framework for an agreement with the United States to end the conflict and reopen the Strait of Hormuz. The claim strengthened market expectations that the supply disruption could begin to ease, even though key details and the implementation timeline remain unclear.
Brent was trading around $94.50 a barrel and WTI around $89.09 a barrel, reflecting continued selling pressure after the sharp rally earlier in the week.
Reuters reported the drop was also influenced by an uptick in tanker traffic through the strait, which helped offset market concerns over accusations of a ceasefire violation and reports of an incident off the coast of Oman. PVM said the growing number of vessels transiting the chokepoint signals “tangible progress” toward resolving the supply crisis, bringing renewed downward pressure on prices.
Even so, the market remains highly headline-driven. UBS argued there is no clear indication this development is materially different from the narrative circulating since the weekend, while oil flows through Hormuz are still constrained—meaning supply restrictions have not fully disappeared. In that sense, the latest decline reflects a repricing of reopening expectations rather than a return to fully normalized flows.
Source: Newsmaker.id
