Oil prices fell sharply after reports that Iran is prepared to reopen the Strait of Hormuz within seven days if the United States takes steps to ease military pressure and its blockade of Iranian ports. WTI crude fell toward $91 per barrel, while Brent dropped below $100 during the session.
The reported proposal has been transmitted to Washington through intermediaries and includes a potential resumption of negotiations aimed at ending hostilities. Expectations of renewed diplomacy quickly reduced the geopolitical risk premium that had supported oil prices amid disruptions to shipping through the critical energy corridor.
The outlook remains uncertain, however, after Iranian media subsequently disputed reports that Tehran had made such an offer. Any confirmed reopening of Hormuz could significantly improve oil flows and ease transportation costs after months of restricted traffic.
