12.06.202608:46:11UTC+00Brent Crude Oil Falls to Over 3-Month Low

Brent crude oil dropped more than 4% to below $86.50 per barrel on Friday, its lowest level since early March, as optimism grew that the US and Iran could reach a peace agreement and end the conflict disrupting energy markets. According to Iran’s Mehr News Agency, a 14-point draft agreement includes lifting oil sanctions and a pledge from Tehran to fully reopen the Strait of Hormuz within 30 days, though the proposal still requires approval from Iranian authorities. President Trump indicated that a deal could be signed as early as this weekend in Europe. The reported framework also calls for the release of frozen Iranian assets, suspension of sanctions, and the withdrawal of US forces from the region. Despite the improving sentiment, significant risks remain, as tensions in the Strait of Hormuz persist, with reports of drones targeting commercial vessels. Iran has threatened to keep the vital waterway closed, even as tanker traffic has begun to increase in recent weeks.