Strong losses of 9% were recorded by oil prices on Wednesday, as expectations of an imminent agreement between United States and Iran that could lead to a de-escalation of the conflict.
The Brent contract for July delivery fell 8.3 percent to $100.7 a barrel, while US crude WTI fell 9.2 percent to $93 a barrel.
According to Axios, U.S. officials believe a preliminary agreement may be reached soon, setting the stage for broader negotiations around Iran’s nuclear program.
The Axios argues that the agreement would include:
-Iran’s commitment to a moratorium on nuclear enrichment,
-the US agreement to lift its sanctions and release billions in “frozen” Iranian funds,
-the lifting of restrictions on transit through the Strait of Hormuz
Exclusive: U.S. and Iran closing in on one-page memo to end war, officials say https://t.co/96m1QMAa3o
– Axios (@axios) May 6, 2026
U.S. President Donald Trump also announced the temporary suspension of Operation Project Freedom, which was aimed at escorting commercial ships to the Seaway of Hormuz, citing progress in the talks.
The US administration said that about 23,000 sailors from 87 countries remain strandedin the Persian Gulf because of the disruption to maritime transport.
This development underscores the breadth of the crisis’s impact on the global supply chain and energy flows.
Despite the improving climate, high energy costs have already begun to constrain demand internationally.
Analysts estimate that even in the event of a reopening of the Hormuz Strait, a full restoration of shipping and trade flows will take several weeks, keeping uncertainty in markets.
