finance
Oil Prices Fall More Than 12% on Reports of US-Iran Deal
Reports indicate the United States and Iran are close to a 14-point memorandum of understanding to conclude the ongoing conflict. Oil prices fell sharply after the news emerged before partially recovering following an Iranian announcement. President Donald J. Trump stated that combat operations would resume at a higher tempo if no agreement is reached.
May 6, 9:23 AM·1m read5 sources
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Reports that the United States and Iran are nearing a deal to end the war triggered a sharp decline in oil prices. The drop followed an Axios report on a potential 14-point memorandum of understanding. Prices later rebounded after Iran took a new step on maritime authority.
A market analysis showed that nearly 10,000 crude oil futures contracts worth about $920 million were sold short at 3:40 a.m. ET. ET. Oil prices then fell more than 12 percent by 7:00 a.m. ET, allowing the short positions to gain roughly $125 million.
The document would outline terms to end the war. No official confirmation of the talks has been released by either government.
U.S. Position President Donald J. Trump addressed the reports directly.
He said combat operations against Iran would resume at a significantly increased tempo if no deal is finalized.
“should Iran fail to agree to a deal, combat operations against Iran will resume at a significantly increased tempo." — U.S. President Donald J. Oil prices then rose 8 percent. The sequence of events left traders monitoring further diplomatic signals.”
