Crude Oil WTI Futures dropped 1.3% in morning trading to $74.76 per barrel, extending a two-session slide as market participants reacted to mounting signs that the United States and Iran may be nearing an interim accord to reopen the Strait of Hormuz.
Several diplomatic threads appeared to converge during the session. According to reports, Qatar circulated a de-escalation proposal among the concerned parties. Separately, Iran was said to be considering a plan that would permit European nations to remove mines from the strait. Adding to the market response, US Treasury Secretary Scott Bessent indicated that a deal could materialize within hours or days, a development that would markedly improve the near-term supply outlook for crude.
Today's losses added to a sharp selloff from Tuesday, when WTI tumbled after President Trump described "very good discussions" with Iran and Bessent told CNBC that a deal to restore freedom of navigation through the strategically important waterway was within reach. Traders also pointed to separate Saudi talks with Yemen's Houthi movement - conducted through Omani mediators - which collectively contributed to a broader sense of regional de-escalation and trimmed the war-risk premium embedded in oil prices.
From a technical perspective, WTI had already shown vulnerability after breaking down from a rising wedge formation near $82, reinforcing bearish momentum in recent sessions. In the current session, the intraday range for WTI spanned from $74.23 to $76.70.
The decline in crude contrasted with strength across US equity markets. Easing geopolitical tensions supported risk assets, with the S&P 500 up 0.6%, the Dow Jones up 1.1%, and the NASDAQ gaining 0.4% during the session. The move illustrated how a reduced supply-disruption premium on oil can coincide with broader equity gains.
Underlying the market reaction is the operational reality for global energy flows. The Strait of Hormuz has been effectively closed since the US-Iran conflict began in February 2026, and Aramco's CEO has stated that more than 2.6 billion barrels of supply have been lost - roughly equivalent to one month of global production. That loss has been a major factor supporting higher oil prices while the closure remained in effect.
Market participants continue to weigh the latest diplomatic signals against a key downside risk: Iran's stated insistence on retaining control over maritime traffic through the strait. Should Tehran hold to that position, talks could falter and the recent price decline could reverse quickly.
Market snapshot
- WTI intraday low-high: $74.23 - $76.70
- WTI price in morning trade: $74.76 per barrel
- US equities: S&P 500 +0.6%, Dow Jones +1.1%, NASDAQ +0.4%