WTI crude plunges to three-month low below $79 on US-Iran deal hopes

West Texas Intermediate (WTI) crude oil tumbled to its lowest level in three months on Monday, dropping roughly 5% to hit $78.60 per barrel. The decline pushed prices below the $79.00 threshold for the first time since early this year.

The sharp sell-off was triggered by media reports that the United States and Iran have reached a preliminary agreement to de-escalate tensions, which could lead to increased oil supply from Iran. Traders interpreted the news as a signal that global crude availability may rise, putting downward pressure on prices.

No official confirmation of the deal has been provided, but the market reacted swiftly, with WTI extending its recent bearish trend. Analysts caution that the move may be overdone if the reports prove unfounded, but near-term sentiment remains heavily skewed to the downside.