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Oil falls toward $80 as US-Iran Hormuz deal talks spark risk rally
Brent dropped from about $86 to near $80 and US equity futures gained more than 1%, even as Brent still failed to break decisively below $80.
US Treasury Secretary Scott Bessent said the United States and Iran could reach a deal as early as Tuesday or Wednesday to reopen the Strait of Hormuz to commercial shipping, driving a broad boost in risk sentiment, Action Forex reports.
Brent crude moved from around $86 to near $80, while US equity futures rallied more than 1%. The market also saw a slight dip in rates, with the benchmark 10-year Treasury yield edging down to around 4.66%.
Despite the initial relief, Action Forex notes Brent’s failure to break decisively below $80 suggests traders were not ready to fully remove the geopolitical risk premium from pricing.
The remaining sticking point is the Strait’s tolling and sovereignty, with Action Forex highlighting that Bessent’s response used “freedom of movement” language, leaving room for interpretation about whether Iran would retain the right to charge for passage.
Latest closeWTI crude $80.00 ▼5.5%|Brent $83.63 ▼7.2%