Iran’s reported memorandum with the US includes lifting sanctions and reopening the Strait of Hormuz, pressuring oil prices.
West Texas Intermediate crude extended losses to near $82.80 after Iran disclosed terms of a draft memorandum of understanding with the US. The agreement reportedly includes lifting US sanctions, withdrawing naval forces, and reopening the Strait of Hormuz, a critical oil transit route.
The draft also addresses unfreezing Iran’s funds and canceling oil sanctions but excludes discussions on Iran’s missile program. Final negotiations will focus on nuclear and economic issues, according to reports.
Oil markets reacted swiftly, with WTI prices declining as the potential for increased supply and eased geopolitical tensions weighed on sentiment.