Brent crude falls below $100

Expectations that the US and Iran may be nearing an agreement to end the war have triggered sharp sell-offs in the global oil market. With this development during the day, it was noted that Brent crude prices fell by over 9 percent to drop below $100. Losses in American crude oil also approached 10 percent, with the price retreating below the $92.3 level. Both types of oil have reached their lowest levels since April 27.

It is reported that the US administration is close to signing a one-page memorandum of understanding that would pave the way for ending the war with Iran and opening the door to broader nuclear talks. These claims played a decisive role in the price decline. Allegedly, Washington is expecting a response from Tehran to the proposal within 48 hours.

While US officials emphasize that a formal agreement has not yet been implemented, they stated that the parties are in the closest position to an agreement since the start of the war. It was stated that the proposal on the table establishes a framework for a 30-day negotiation process to comprehensively discuss ending conflicts in the region, reopening the Strait of Hormuz to traffic, restricting Iran's nuclear activities, and lifting US sanctions.

Options for holding these negotiations include the Pakistani capital, Islamabad, or the Swiss city of Geneva. A US official suggested that during the negotiation period, Iran could potentially lift restrictions on ship passage in the Strait of Hormuz, while the US could gradually lift its naval blockade.

Oil markets continue to closely monitor new developments and potential diplomatic steps.

News Source: 12punto