Global oil prices tumbled below the $100 mark on Wednesday and Thursday as signs of a diplomatic breakthrough between the United States and Iran eased fears of a prolonged energy crisis.
Brent crude, the international benchmark, dropped nearly 11% to around $97 per barrel, its lowest level since late April, while U.S. West Texas Intermediate fell toward $91.
The sell-off followed reports that both nations are nearing a “one-page memorandum of understanding” to end the recent conflict.
Market sentiment shifted rapidly after President Trump suggested a resolution was near, stating on social media that the “already legendary Epic Fury will be at an end” and the strategic Strait of Hormuz would soon be “OPEN TO ALL, including Iran.”
Traders had previously driven prices as high as $126 due to a naval blockade in the Middle East.
However, the prospect of a ceasefire and the reopening of shipping lanes triggered a “peace dividend” across financial markets.
Despite the optimism, some caution remains.
Iranian officials described the current terms as an “American wishlist” rather than a finalized reality, while analysts warned that “even if the strait reopens, normalization in shipping and the trade flows could take months.”
