Key facts
- WTI crude oil futures experienced a significant weekly decline, trading at $83.51, down 3.61% for the week.
- The selloff was triggered by reports of an agreement between Iran and Oman regarding the Strait of Hormuz.
- Market sentiment shifted as details emerged that the Iran-Oman agreement was not final and Iran's conditions for reopening the strait were not met by the U.S.
- President Trump rejected terms associated with reviving the June Iran ceasefire agreement.
West Texas Intermediate (WTI) crude oil futures saw a significant selloff, trading down 3.61% for the week to $83.51, as traders reacted to reports of a potential shipping arrangement in the Strait of Hormuz. The market initially dropped from a weekly high of $86.57 to a low of $79.62 following news that Iran and Oman had reached an agreement concerning control and revenue sharing in the vital waterway.
However, the tone shifted as details emerged that the agreement was not final and Iran's conditions for allowing ships to use the central channel—including an end to regional war, sanctions relief, and an end to port blockades—were not met. President Trump further influenced the market by rejecting terms tied to reviving the June Iran ceasefire agreement. This led to a bounce in WTI crude futures, as the market began to price in the reality that no final deal was in place and the Strait of Hormuz had not reopened.