A man walks past a banner depicting Iran’s current supreme leader Ayatollah Mojtaba Khamenei along a street Tehran on May 6, 2026.
AFP | Getty Images
U.S. crude oil prices fell about 6% Wednesday on a report Iran would restore traffic through the Strait of Hormuz as part of a framework deal with the U.S.
West Texas Intermediate futures tumbled 5.7% to $88.53 per barrel by 8:33 a.m. ET. International benchmark Brent oil slid about 4.7% to $94.91.
Tehran has committed to restore commercial traffic through Hormuz to pre-war levels within one month of an agreement with the U.S., according to a Reuters report citing Iranian state television.
However, Iran will manage ship traffic through Hormuz in cooperation with Oman, state television said. U.S. military forces would withdraw from the vicinity of Iran and lift the naval blocakde, the reports said.
The reports come as Iran and the U.S. teeter on the edge between a deal and a renewed round of military escalation. U.S. forces launched strikes in southern Iran this week in a move the Pentagon described as defensive. Tehran vowed to retaliate for the attacks.
This is a developing story. Please check back for updates.
