WTI crude oil falls below $100, Brent eases off as reports signal US-Iran deal

WTI crude oil prices slipped below the $100 per barrel mark on Thursday after reports suggested that a final US-Iran agreement could be announced within hours, raising hopes of easing tensions in the Strait of Hormuz and restoring disrupted oil flows, as per reports.

Brent crude price also eased off, with price fluctuating between $102-$105.

For WTI, oil prices had earlier reportedly surged above $101 during intraday trade amid fresh geopolitical concerns after reports claimed Iran would retain its enriched uranium stockpile.

However, sentiment reversed sharply after reports claimed that a draft agreement between the United States and Iran had been finalised with Pakistani mediation.

The development triggered a broad sell-off in crude, with traders betting that a potential deal could reopen the Strait of Hormuz, a critical route that handles nearly one-fifth of global seaborne oil shipments.

The possibility of easing supply disruptions weakened the geopolitical premium that has supported crude prices for the past three months. Market participants believe that restoration of shipping through the strait could significantly improve global supply conditions and cool prices further.

Despite the decline, traders remain cautious as previous ceasefire and agreement deadlines in the region have repeatedly been delayed or collapsed.

Analysts at FXStreet, online Forex analysis portal, noted that the latest price fall reflects expectations of a breakthrough rather than confirmation of a fiinal agreement.