Oil prices recorded strong losses of around 9% on Wednesday, as expectations strengthened for an imminent agreement between the United States and Iran that could lead to a de-escalation of the conflict.

July Brent crude futures fell by 8.3% to $100.7 per barrel, while US WTI crude dropped 9.2% to $93 per barrel.

According to Axios, US officials believe a preliminary agreement could be reached soon, setting the framework for broader negotiations over Iran’s nuclear program.

Axios reports that the agreement would include:

• Iran’s commitment to a moratorium on uranium enrichment
• The US agreeing to lift sanctions and release billions in frozen Iranian assets
• The removal of restrictions on passage through the Strait of Hormuz

US President Donald Trump also announced the temporary suspension of Operation “Project Freedom,” which had aimed to escort commercial vessels through the Strait of Hormuz, citing progress in negotiations.

The US administration stated that around 23,000 sailors from 87 countries remain stranded in the Persian Gulf due to disruptions in maritime transport.

This development highlights the scale of the crisis’ impact on global supply chains and energy flows.

Despite the improvement in sentiment, high energy costs have already begun to restrict demand at a global level.

Analysts estimate that even if the Strait of Hormuz fully reopens, complete restoration of shipping and trade flows will take several weeks, keeping markets in a state of uncertainty.