West Texas Intermediate drops to a three-month low as Middle East tensions ease following a US-Iran agreement and Hormuz reopening.
West Texas Intermediate crude fell to $73.36, its lowest level in three months, as hopes for a US-Iran peace deal weighed on prices. The decline puts WTI on track for a weekly drop exceeding 10%, driven by optimism over reduced geopolitical risks in the Middle East.
The agreement, signed by US President Donald Trump and Iranian officials, includes safe passage through the Strait of Hormuz, sanctions waivers, and a USD 300 billion reconstruction fund. Talks to implement the deal are set to continue Friday, further easing supply concerns.
Despite a larger-than-expected drawdown of 8.26 million barrels in US crude inventories, the market ignored supply tightness, focusing instead on the potential for increased Iranian oil exports and reduced regional tensions.