FX.co ★ Brent Falls Toward 5-Week Low

Brent crude oil futures fell about 3% to $96.60 per barrel on Wednesday, approaching a five-week low, as optimism grew that the United States and Iran could reach a peace agreement despite continuing hostilities. US Secretary of State Marco Rubio noted that any potential deal could still take several days to finalize. Simultaneously, US forces carried out strikes on targets near the strategic strait, while Iran’s Revolutionary Guard claimed it had fired at multiple US aircraft that entered Iranian airspace. The critical waterway, which typically handles around 20% of global oil and LNG shipments, remains effectively closed due to blockades imposed by both sides. However, two non-Iranian supertankers successfully passed through the chokepoint on Tuesday, marking the first significant movement of unrestricted crude in a week.