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U.S.-Iran Truce Hopes Push Oil to Multi‑Week Lows

Diplomatic signals cut crude prices, leaving the market exposed to a quick reversal if talks collapse.

Overview

  • President Trump said he called off planned strikes and signaled a near‑term signing of a negotiated end to the fighting, a move that sent prices sharply lower.
  • Pakistan’s Prime Minister Shehbaz Sharif said a final agreed text has been completed and Islamabad is coordinating next steps between Washington and Tehran.
  • Iranian statements were mixed, with the foreign minister saying an MoU is close while other officials stressed no final decision has been made, creating ongoing uncertainty.
  • Markets reacted fast, with Brent and WTI tumbling to multi‑week lows on Friday and intraday swings returning when fresh reports of U.S. strikes briefly surfaced.
  • Physical fundamentals remain tight because inventories sit below seasonal averages and flows through the Strait of Hormuz are still disrupted, so analysts warn any breakdown in talks could trigger a rapid price spike.