ISTANBUL, April 18 — Oil prices sank more than 11 per cent on Friday as growing expectations of a possible US-Iran deal to end the war eased concerns over prolonged supply disruption in West Asia.
Brent crude fell by US$11.4, or 11.4 per cent, to US$88 a barrel as of 1315GMT, its lowest level in around two weeks, while US benchmark West Texas Intermediate dropped US$11.3, or 12.2 per cent, to US$84.8.
The selloff gathered pace as reports pointed to progress in backchannel diplomacy, Anadolu Ajansi reported.
US and Iranian negotiators are discussing a three-page framework that could help end the conflict, with one proposal under discussion involving the release of US$20 billion in frozen Iranian funds in exchange for Iran giving up its stockpile of enriched uranium, Axios reported on Friday, citing sources briefed on the talks.
Adding to pressure on prices, top Iranian diplomat Abbas Araghchi said passage for all commercial vessels through the Strait of Hormuz is “completely open” for the remaining ceasefire period in line with the Lebanon truce, signaling a possible easing in shipping risks through one of the world’s most important oil chokepoints.
US President Donald Trump also said on Friday that Iran has announced the opening of the Strait of Hormuz for full passage.
“Iran has just announced that the Strait of Iran is fully open and ready for full passage. Thank you,” Trump wrote on his Truth Social platform.
The Axios-reported framework also includes discussions on what would happen to Iran’s enriched uranium stockpile, how much of its frozen assets could be unfrozen, and the terms under which Tehran could use the money, according to Anadolu.
One compromise proposal under discussion would reportedly involve sending part of the highly enriched uranium to a third country while down-blending part of it inside Iran under international monitoring.
Trump said Thursday that Washington was “very close” to reaching a deal with Iran and indicated negotiators could meet again over the weekend, reinforcing hopes that the conflict may be nearing a diplomatic off-ramp.
Still, the market remains highly sensitive to developments around Hormuz, and traders are likely to stay cautious until a formal agreement is reached and vessel traffic through the strait is seen moving normally on a sustained basis.
