WTI crude oil futures fell more than 6% to $86.80 per barrel on Wednesday, as growing momentum behind US diplomatic efforts to end the war with Iran outweighed concerns over further troop deployments and the near-closure of the Strait of Hormuz. Washington has reportedly drafted a 15-point proposal, relayed to Tehran via Pakistan, aimed at resolving the conflict. At the same time, roughly 2,000 soldiers from the 82nd Airborne Division have been deployed to the region to bolster security around the strategically critical waterway.
Iran has so far shown little inclination to compromise, firing missiles at Israel and rejecting ceasefire negotiations, while permitting limited passage of foreign vessels through the strait under certain restrictions. The escalating crisis is amplifying global energy strains: Chevron has warned of a potential fuel crunch in California, hundreds of fuel shortages have been reported in Australia, the Philippines has declared a national energy emergency, and several Asian countries are said to be stockpiling jet fuel.
