Hot Commodities: Oil slides toward $90 as diplomatic breakthrough eases supply fears

WTI crude oil futures collapsed more than 6%, falling toward the $90 per barrel level after renewed optimism surrounding a potential US-Iran peace agreement eased fears of prolonged energy supply disruptions. Investor sentiment improved after US President Donald Trump stated that negotiations with Tehran had been ?largely negotiated,? fueling expectations that the strategically critical Strait of Hormuz could soon reopen. The narrow shipping route, which carries nearly one-fifth of global oil and LNG supplies, has remained largely shut since the conflict began on February 28, severely disrupting global energy flows and forcing major Middle Eastern producers to halt millions of barrels per day in crude output. A full reopening of Hormuz would provide significant relief for energy-importing Asian economies, improve global supply conditions, and potentially push oil prices sharply lower, while also easing inflationary pressures that have weighed heavily on financial markets and central bank policy expectations in recent months.

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