Oil prices extended a 16% weekly slide as Iran offered to halt tanker attacks in exchange for a U.S. blockade lift, though skepticism remains high due to ongoing regional hostilities and internal U.S. cabinet resistance.
Brent fell 3.6% to $94.00 as Qatar's prime minister carried an Iranian proposal to the White House to reopen the Strait of Hormuz, extending last week's 16% slide. A de-escalation would ease tanker-attack and supply-disruption risk premia. However, the terms are unconfirmed and senior US officials reportedly oppose the deal, leaving room for a rebound if talks collapse.
WTI dropped 3% to $88.09 as Iran approved Qatari-brokered terms to reopen the Strait of Hormuz and halt attacks on Gulf tankers, with Trump calling renewed strikes 'highly unlikely'. A reopening of the strait would relieve the supply fear premium. The deal is unconfirmed and opposed by key US cabinet members, which caps confidence in the bearish direction.
US natural gas rose 0.8% to $3.02/MMBtu alongside the oil decline, a mild positive move rather than a direct reaction to the Hormuz deal. The oil-market de-escalation is the dominant story; the gas move is small and its driver is not clearly stated in the article.
Brent crude fell 3.6% to $94.00 and WTI dropped 3% to $88.09 as markets reacted to a Qatari-brokered proposal to reopen the Strait of Hormuz. The deal, which includes the release of $8 billion in frozen Iranian funds, faces significant opposition from senior U.S. cabinet members despite signals from President Trump that further strikes are unlikely.
Traders priced in de-escalation after Iran signed off on Qatari-brokered terms to reopen the Strait of Hormuz in exchange for the US lifting its blockade and releasing $8 billion in frozen funds, reducing the risk premium on Gulf oil shipments.
Yes. The terms are unconfirmed, several senior US officials reportedly oppose the deal, and attacks on shipping in or near Hormuz continued over the weekend, so a breakdown in talks could reverse the decline.
The prospect of an interim US-Iran deal, brokered by Qatar, to reopen the Strait of Hormuz and end attacks on Gulf tankers, which reduces the supply-disruption premium in crude prices.
A failure or rejection of the deal: top US cabinet members reportedly oppose the terms, Rubio says the sides are not close to a breakthrough, and vessels were attacked in or near the strait again over the weekend.