Brent Crude Dips Below $100 Amid Optimism About Progress Towards Ending Iran War
Oil continued to drop on Thursday amid optimism about progress towards ending the war in Iran.
Brent crude, the international benchmark, dropped a little over 3% at 9:48 a.m. ET, dipping below $100 a barrel.
The West Texas Intermediate, the U.S. benchmark, also fell, standing below $93 per barrel at the same time.
Stocks are also aiming higher following reports that Pakistani mediators are optimistic about chances of getting a deal.
CNN detailed that the White House received positive feedback on the matter. Citing a source familiar with the matter, the outlet said President Donald Trump appears to be simplifying issues related to the negotiations so moderates in Tehran will return to the negotiating table.
Iran said on Wednesday it was reviewing the proposal and is expected to provide its response to Pakistani mediators on Thursday.
While neither Washington nor Tehran have provided any details about the proposal, Axios reported that the countries are getting close to a one-page memorandum of understanding with 14 points to end the war and usher detailed nuclear negotiations.
Among them are a moratorium on nuclear enrichment and lifting the blockade on the Strait of Hormuz. The U.S., in turn, would lift sanctions on the country and end its own restrictions in the key waterway.
If agreed, the document would declare an end to the war and begin a 30-day period in which the Strait of Hormuz would gradually reopen while discussions take place. Should they collapse, the U.S. would be able to resume its blockade and military actions.
Parties are currently negotiating a moratorium of at least 12 years, a middle ground between the U.S.’s proposal of 20 years and Tehran’s five. The U.S. also wants for any violation from Iran to extend the moratorium.
Iran, on its end, would commit to never seek a nuclear weapon or conduct any related activities, including operating underground facilities. The country would also allow enhanced inspections and agree to remove its highly enriched uranium from the country.
However, Axios added in another passage of the report that White House officials believe it could be hard for Iranian leadership to reach consensus given the existing internal rifts.
Secretary of State Marco Rubio reacted to the development on Wednesday, saying: “This is highly complex and technical. But we have to have a diplomatic solution that is very clear on the topics they are willing to negotiate on and the extent of the concessions they are willing to make at the front end in order to make it worthwhile.”
