Iran and the US exclude Strait of Hormuz and nuclear talks from the upcoming memorandum, weighing on oil prices near $83.00.
Iran’s state media released key terms of a memorandum of understanding with the US, set to be signed in Geneva on Sunday. The agreement omits commitments on Strait of Hormuz management and nuclear negotiations, deferring both to future discussions.
The Strait’s administration will be addressed regionally between Tehran and Oman, while nuclear talks are slated to resume within 60 days post-signing. Markets had priced in optimism over potential easing of tensions, but the limited scope of the deal offered little support.
WTI crude oil extended losses, trading 2.65% lower near $83.00 following the disclosure. The decline reflects diminished expectations for immediate geopolitical relief in energy markets.