Oil slips as US Iran talks raise Strait reopening hopes
Big news in the oil world: prices just took a sharp dip, with Brent crude dropping 7.2% to $95.95 and WTI dropping nearly 7% to $89.44 per barrel.
Why? The US and Iran are making progress in peace talks, which could mean more oil hitting the market soon.
If things go well, the Strait of Hormuz, a crucial route for roughly one-fifth of global oil and LNG shipments, might finally reopen.
Talks hit nuclear and asset hurdles
Talks are moving forward but still have big hurdles, mainly around Iran's nuclear program and frozen assets.
President Trump called discussions "negotiations were proceeding in an orderly and constructive manner" but warned things could get tense if they fall apart.
The strait has been a flashpoint since the escalation of the conflict in late February, causing lots of price swings and uncertainty, so everyone's watching closely to see if a deal will bring some much-needed stability.