– Trump says deal with Iran will let the oil flow
Oil sank after the US and Iran agreed to an interim deal to end their months-long war, potentially allowing the Strait of Hormuz to reopen and easing a supply crunch that has rattled global energy markets.
Brent tumbled more than 4% to below $84 a barrel, after closing last week at a three-month low, while West Texas Intermediate was near $81. President Donald Trump said in social-media posts he was authorizing the “toll free opening” of Hormuz, as well as ending a blockade of the Islamic Republic, with the strait to reopen when the deal is signed on Friday.
While the US leader heralded the move to “let the oil flow!,” traders and analysts struck a more cautious tone, highlighting the lack of fine-print detail on the text, hurdles for the shipping industry to restart transits of the waterway, and a drawn-out timeline for fields to restart pumping.
Iran Deputy Foreign Minister Kazem Gharibabadi confirmed an agreement was reached, but said the text would be published only after the signing event in Switzerland. US Vice President JD Vance said he “certainly” plans to attend the ceremony, and it was possible that Trump would also go.
