On Wednesday, U.S. crude oil prices fell over 4%, with West Texas Intermediate futures decreasing by 4.6% to $89.55 per barrel, while Brent oil dropped 3.75% to $95.85.
This decline follows Iranian state television's announcement of a draft framework for a memorandum of understanding with the U.S., which includes Iran's commitment to restore commercial traffic through the Strait of Hormuz to pre-war levels within a month of an agreement.
However, the management of ship traffic will involve cooperation with Oman, and U.S. military forces are expected to withdraw from the area and lift the naval blockade.
Despite these developments, industry experts express skepticism about the rapid return of oil flows to normal levels, with Sultan Ahmed Al Jaber, head of Abu Dhabi National Oil Co., stating that it could take at least four months to reach 80% of normal levels and potentially until 2027 for full normalization.
This situation highlights the ongoing volatility in U.S.-Iran relations and its implications for the oil market