FX.co ★ WTI Plunges as Iran Pledges Hormuz Shipping Recovery

WTI crude oil futures tumbled 6% to $88.30 per barrel on Wednesday after Iranian state television reported that Tehran is committed to restoring commercial shipping through the Strait of Hormuz to pre-war levels within a month. The strait, which typically handles about 20% of global oil and LNG trade, remains a vital artery for world energy markets. At least two non-Iranian supertankers passed through the chokepoint on Tuesday, marking the first movement in a week of roughly 4 million barrels of unrestricted crude through Hormuz. Oil prices have now slipped to near five-week lows and are down more than 16% in May, following sharp gains in March and April. The recent decline has been driven by growing optimism that the US and Iran are edging closer to an agreement to fully reopen the strait. An Iranian official said indirect talks with Washington are ongoing, while US Secretary of State Marco Rubio cautioned that any peace deal could still take several days to finalize.