Oil prices fall as markets price in reduced supply risks from a potential US-Iran agreement reopening the Strait of Hormuz.
West Texas Intermediate crude fell to $90.80 per barrel, extending a four-day decline amid rising hopes of a US-Iran agreement. The drop reflects easing supply fears after reports of a potential deal to reopen the Strait of Hormuz, a critical chokepoint for global oil shipments.
Prices had previously surged due to disruptions in the region, with Middle Eastern producers cutting millions of barrels of daily output. A 60-day ceasefire extension and the lifting of blockades could restore roughly one-fifth of global oil and LNG flows.
Markets remain cautious as negotiations face hurdles, including disputes over blocked Iranian assets. A final deal could further pressure oil prices by alleviating supply constraints.