Brent and WTI fell sharply after an unconfirmed report suggested a ceasefire and Hormuz reopening, trimming geopolitical risk premiums.
Oil prices extended losses, with Brent and WTI each sliding approximately $2 per barrel within an hour. The decline followed an unconfirmed report of a US-Iran ceasefire agreement, including the reopening of the Strait of Hormuz for free navigation.
The move added to a broader downturn, with crude already down roughly 5% from last week’s highs. Markets remain highly sensitive to geopolitical developments, particularly those affecting Hormuz, a critical chokepoint for global oil shipments.
The report, sourced from Russian state media citing unnamed military and security contacts, lacks confirmation from major outlets or official statements from the US, Iran, or Gulf states. Analysts caution the price reaction may reverse if the report fails to gain further traction.