Crude prices fall as traders anticipate a potential agreement that could restore Iranian oil flows within a month.
Oil prices dropped below $90 as hopes for an Iran-US deal raised expectations of a swift reopening of the Strait of Hormuz. The potential agreement could restore Iranian oil supply to global markets within a month, easing supply constraints.
Prior to the news, crude had stabilized near $90 amid geopolitical tensions. Analysts noted that a deal could add significant volumes, though timing remains uncertain. The market had priced in limited Iranian exports due to sanctions.
Traders are closely monitoring developments, with the prospect of increased supply weighing on prices. The Dow hit a record high on the oil retreat, offsetting mixed sentiment in chip stocks and data centers.