U.S. crude oil prices stabilized on Wednesday after a volatile session triggered by conflicting reports regarding a potential U.S.-Iran deal. West Texas Intermediate futures fell nearly 4% to $90.19 per barrel, while Brent crude dropped over 3% to $96 following an Iranian state media claim that Tehran would restore commercial traffic through the Strait of Hormuz within a month of an agreement. The White House quickly dismissed this report as a “complete fabrication,” underscoring the uncertainty surrounding ongoing negotiations.

This development is significant for the oil market as it highlights the fragility of supply dynamics amid geopolitical tensions. Industry experts express skepticism about a swift return to prewar oil flow levels, with projections indicating it could take years for full normalization, even if a deal is reached. This uncertainty may keep oil prices volatile as traders weigh the implications of potential military escalations against supply recovery timelines.

Market professionals should closely monitor developments in U.S.-Iran relations, as any escalation could further impact oil prices and overall market sentiment in the energy sector.

Source: cnbc.com