Brent and WTI crude futures plunged nearly 10% after reports of U.S.-Iran negotiations to pause hostilities and ease supply concerns.
Oil markets tumbled Wednesday as investors reacted to reports of a potential U.S.-Iran agreement to halt conflict. Brent crude fell 8.58% to $100.4 per barrel, while WTI dropped 9.82% to $92.23, reflecting fears of reduced geopolitical risk premiums.
The decline follows weeks of elevated prices driven by supply disruptions and escalating tensions. Analysts noted the market had priced in a prolonged standoff, making any de-escalation a catalyst for selling. Prior sessions saw crude stabilize near multi-month highs.
Traders are now assessing whether the reported memorandum will translate into tangible supply increases, with broader implications for inflation and consumer costs.