28.05.202614:35:39UTC+00WTI Swings as US and Iran Near Hormuz Deal

WTI crude oil futures traded choppily around $89 per barrel on Wednesday, swinging between gains and losses after reports that the United States and Iran had reached a preliminary agreement to extend their ceasefire and launch talks on Iran’s nuclear program. According to Axios, the proposed 60-day memorandum of understanding would secure unrestricted shipping through the Strait of Hormuz, though it still requires approval from President Donald Trump. The report also indicated that Iran would clear all mines from the strait within 30 days.

Earlier in the session, oil prices had climbed about 2% after the US announced it had destroyed several attack drones near Hormuz, while Kuwait reported intercepting a missile fired toward its territory. In addition, Iran’s Revolutionary Guard stated that several vessels had attempted to enter the Persian Gulf without authorization, warning that it would respond forcefully to any disruption in the strategic waterway.