WTI Oil Plunges 4.5% as US-Iran Deal Defuses Strait of Hormuz Risk
West Texas Intermediate crude dropped over 4.5% to near $79.15 on Monday after reports of a US-Iran agreement eased geopolitical risks tied to the Strait of Hormuz.
West Texas Intermediate (WTI) crude oil suffered a sharp decline on Monday, falling 4.53% to trade around $79.15 per barrel. The sell-off followed reports that a US-Iran deal is removing the geopolitical risk premium that had been supporting prices.
The easing of tensions in the Strait of Hormuz – a critical chokepoint for global oil shipments – is seen as undermining the supply disruption fears that had recently lifted crude. Traders are now repricing the risk of a potential blockade or conflict in the region.
The move represents a significant unwind of the safety premium built into oil prices over the past weeks. No further details on the deal's terms have been released yet.
Source: FXStreet Forex News