U.S. media reported that the United States and Iran are close to signing a cease-fire agreement, fueling hopes for an end to the war and sending June delivery West Texas Intermediate (WTI) crude futures sharply lower.
According to Investing.com on the 6th, WTI June futures were trading at $89.61 as of 8:02 p.m. (Korea time), down $12.66 (12.38%) from the previous trading day.
It is seen that international oil prices are falling after a U.S. outlet reported that the United States and Iran are close to a cease-fire agreement.
Axios, an online U.S. outlet, cited sources as saying on the day (local time) that the United States and Iran are close to signing a one-page memorandum of understanding (MOU) that lays out a framework to end the war and resolve nuclear issues.
According to Axios, the MOU contains 14 clauses that set out basic principles for detailed nuclear negotiations as well as ending the war.
The White House is reportedly waiting for a response from the Iranian side on key issues.
Earlier, U.S. President Donald Trump said the previous day on his social network service (SNS), Truth Social, that "the United States will temporarily suspend the 'Project Freedom' operation."
Project Freedom is a military operation to escort merchant ships transiting the Strait of Hormuz.
Axios said Trump's decision to temporarily suspend Project Freedom was due to progress in the talks.