Oil Prices Tumble as Deal to End War Nears

All signs are pointing toward de-escalation in the Iran war, and world markets are pleased. Axios reports that the US and Iran are close to signing a memorandum to formally end hostilities and set up more detailed talks. Reuters quotes a Pakistani source who similarly says a deal is near. Nothing is locked in, but it appears to be the closest the two sides have come to an agreement since fighting began—and a key reason President Trump paused a new military operation in the Strait of Hormuz on Tuesday.

Dow futures surged more than 500 points, or more than 1%, early Wednesday on the renewed optimism, and the benchmark S&P 500 also was up about 1%, reports CNBC. At the same time, oil prices were falling quickly, with the price of international Brent crude down more than 7% to roughly $101 a barrel.

Under the broad strokes of the deal, Iran would reportedly pause uranium enrichment for at least 12 years, pledge never to pursue nuclear weapons, accept tougher UN inspections, and potentially ship its highly enriched uranium out of the country. In return, the US would gradually lift sanctions, free billions in frozen Iranian assets, and ease restrictions in the Strait of Hormuz, alongside Iran.