Oil slides after Pakistani source says US and Iran are close to framework peace deal

Oil prices fell after reports that the United States and Iran are close to a framework peace deal that could ease sanctions pressure and lower the risk of disruption in the Strait of Hormuz.

Reuters reported that Brent crude fell to two-week lows and briefly dropped below $100 a barrel intraday, while West Texas Intermediate also moved sharply lower. The report said a Pakistani source claimed the two sides were nearing an initial peace deal.

Separate Reuters-sourced reporting said the White House believed it was close to a one-page memorandum of understanding that would set out a framework for more detailed nuclear negotiations. That report also said nothing had been agreed yet and U.S. officials had not immediately commented.

The market reaction reflects how sensitive oil traders remain to any sign that tensions with Iran could ease. A possible framework deal would reduce fears about shipping through the Strait of Hormuz, a crucial route for global crude flows.

For now, the reports point to a possible diplomatic opening rather than a confirmed agreement. The next move will depend on whether either side publicly endorses the reported framework and whether oil prices keep falling in the next session.