Brent and WTI crude fell 3-4% after Iran claimed a draft deal with the US, which Washington denied as fabricated.
Crude oil prices tumbled after Iran’s state media reported a 14-point draft agreement with the US to reopen the Strait of Hormuz and lift naval blockades. The White House swiftly dismissed the document as a fabrication, but markets reacted sharply, with Brent falling to near $93.00 and WTI to around $90.00.
The reported framework defers critical issues like nuclear enrichment to a 60-day negotiation window. Tehran framed the draft as a US concession, while Washington denied any binding agreement. The discrepancy highlights uncertainty over whether the document even exists.
Despite the denial, traders priced in optimism for a potential deal, though analysts warned that reopening the Strait of Hormuz would require weeks of de-mining and logistical efforts.