Crude Falls for 2nd Day on US-Iran Deal Hopes

Crude oil prices tumbled for a second straight session on Thursday, with West Texas Intermediate settling near 93 per barrel and Brent crude around 99, as diplomatic signals pointed to a potential US-Iran agreement to end their nearly 10-week conflict and reopen the Strait of Hormuz.

The declines followed sharp drops earlier in the week, with both benchmarks falling more than 7 percent on Wednesday amid reports that Washington and Tehran were finalizing a brief memorandum of understanding. The one-page proposal, according to people familiar with the talks, would formally conclude hostilities, gradually lift the US blockade on Iranian ports and restore navigation through the strait, a chokepoint for about 20 percent of global oil shipments. Iran is expected to respond via mediators including Pakistan within the next two days, though Tehran has described parts of the plan as unrealistic and rejected demands to suspend its nuclear program immediately.

The conflict erupted in late February, prompting exchanges of fire, a double blockade of the strait by the US and Iran, and fears of broader regional disruptions. More than 1,500 commercial vessels carrying 22,000 sailors remain...