WTI Oil Plunges 4.5% as US-Iran Deal Defuses Strait of Hormuz Risk

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.