Oil Prices Plummet as US-Iran Peace Deal Nears

Oil prices plummeted to two-week lows after a Pakistani source revealed that the US and Iran were close to an initial peace deal. The news sent Brent crude futures falling by $9.08, or 8.3%, to $100.79 a barrel, marking its lowest point since April 22.

The Strait of Hormuz closure has been a major contributor to the price increase, with Brent trading at its highest level since March 2022 last week. The US military's efforts to help stranded ships exit the strait have resulted in several small boats being destroyed.

U.S. crude oil inventories fell for a third week, while gasoline and distillate stocks also declined. Crude stocks fell by 8.1 million barrels in the week ended May 1, according to market sources citing American Petroleum Institute figures.