WTI Oil slumps on US-Iran deal hopes, Strait of Hormuz easing
FXStreet2026-05-06
WTI crude oil prices have plummeted due to rising hopes for a US-Iran diplomatic agreement. The possibility of easing restrictions around the Strait of Hormuz is driving down oil prices by reducing geopolitical risk premiums. Despite a positive EIA report on supply expectations, the market is primarily focused on the improving geopolitical backdrop.