Oil Prices Plummet Below $100 a Barrel on US-Iran Peace Deal Hopes

Oil prices plummeted on Thursday, falling below $100 a barrel as investors reacted to renewed hopes for a US-Iran peace deal. Brent crude futures dropped by $1.95, or 1.93%, to $99.32 a barrel, while U.S. West Texas Intermediate fell by $1.93, or 2.03%, to $93.15.

The decline extended the previous session's heavy losses, with both benchmarks slumping more than 7% on Wednesday. Analysts warn that prices could rebound if conflict escalates again, citing reports of progress towards potential peace talks.

According to Saudi Arabia's Al Arabiya news channel, understandings have been reached to ease the U.S. blockade in exchange for a gradual reopening of the Strait of Hormuz. However, Reuters could not immediately verify the contents of this report.