Oil prices breach key moving averages after Iran reveals terms of a potential US deal, easing sanctions and lifting naval blockades.
West Texas Intermediate crude fell more than 4% to break below its 100-day moving average, marking its first drop beneath key daily averages since January. The decline follows Iran’s disclosure of a proposed memorandum with the US, which includes demands to lift sanctions and end a naval blockade—terms previously rejected by the Trump administration.
Prices had tested the 100-day average yesterday before accelerating losses today, exiting a triangle pattern that analysts say could fuel further downside momentum. Support now sits at the $80 level, with traders eyeing potential follow-through after the technical breakdown.
The deal’s details suggest a shift in US policy, potentially increasing Iranian oil exports and pressuring global supply dynamics. Markets are assessing whether the agreement will materialize or face political hurdles.