Oil prices sharply reversed course Thursday afternoon after reports emerged that the United States and Iran could be only hours away from announcing the terms of a new agreement aimed at easing tensions and restarting negotiations.
Futures for Brent crude, the international benchmark, fell 2.6% to around $102.30 per barrel after earlier rising as much as 3.5% during the trading session. US benchmark West Texas Intermediate (WTI) crude also dropped 2.5% to trade below $96 per barrel after previously climbing nearly 4%.
The sudden decline followed reports from Saudi state media outlet Al-Arabiya, which said the US and Iran had reached an agreement through Pakistani mediation. According to the report, the proposed deal includes a comprehensive ceasefire, commitments from all parties to avoid targeting infrastructure, and guarantees for freedom of navigation in the Persian Gulf and Strait of Hormuz through a joint monitoring mechanism.
The reported draft also includes a gradual lifting of sanctions on Iran in exchange for compliance with the agreement, while negotiations on unresolved issues are expected to begin within seven days. The announcement of the agreement was reportedly expected within hours.
Markets had initially moved higher earlier in the day after Iranian Supreme Leader Mojtaba Khamenei stated that Iran’s stockpile of enriched near-weapons-grade uranium should not be sent abroad, complicating ongoing negotiations with Washington.
The White House has repeatedly maintained that removing Iran’s enriched uranium stockpile remains a key condition for any agreement. President Donald Trump previously stated during an April 21 White House event that the United States would not allow Iran to retain highly enriched uranium.
“We will get it. We don’t need it. We don’t want it,” Trump said when asked whether Iran could keep its enriched uranium reserves. Trump also stressed that the US wanted the Strait of Hormuz to remain a free international waterway without tolls or disruptions.
The latest reports of progress in negotiations appeared to ease investor concerns about potential supply disruptions in the region, sending oil prices lower by the afternoon session.
Naman is a copy editor at Times Now, with over three years experience in covering US News, politics, global affairs, sports, and other domains. Apart...View More
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