economy
Oil prices fall more than 7% as U.S. and Iran appear close to deal to end war
Oil prices fell sharply after Axios reported that the U.S. and Iran were closing in on an agreement to bring an end to the conflict.
TL;DR
- International benchmark Brent crude futures fell nearly 8%, and U.S. West Texas Intermediate futures dropped about 7%.
- The White House reportedly believes it is nearing a preliminary agreement with Iran to end the conflict.
- President Trump expressed doubt about a deal and threatened increased military strikes if Iran did not agree.
- The U.S. expects Iran's response to key points within 48 hours.
- The U.S. temporarily halted "Project Freedom," a military effort to escort vessels through the Strait of Hormuz, citing negotiation progress.
- Normalization of oil flows through the Strait of Hormuz is considered crucial due to declining global inventories.
- Reopening the waterway may still take "weeks and weeks" to normalize shipping and trade flows.