Iran Talks Send Oil Prices Plummeting 4%
Oil prices plummeted by 4% as reports emerged of Gulf states planning to meet with Iran to discuss the future of the Strait of Hormuz.
The Strait remains de facto blocked, with some vessels managing to pass through after switching off their transponders and receiving assistance from the US military. However, traffic is significantly lower than pre-war levels.
The situation has changed in recent days following a major victory by the Houthis against the official government of Yemen, allowing them to take control of a key port on the Red Sea. This development has given Iran significant leverage in negotiations, but there are no indications that the US is ready to negotiate with Tehran.
Traders used this news as an excuse to take profits off the table after the recent strong rally.