U.S. oil falls below $89 on report Iran would restore Hormuz traffic
A man walks past a banner depicting Iran’s current supreme leader, Ayatollah Mojtaba Khamenei, on a Tehran street on May 6, 2026.
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U.S. crude oil prices fell nearly 6% on Wednesday following news that Iran would revive traffic in the Strait of Hormuz as part of a framework agreement with the United States.
West Texas Intermediate Futures fell 5.7% to $88.53 per barrel at 08:33 GMT. International comparison Brent Oil fell nearly 4.7% to $94.91.
According to Reuters, based on Iranian state television, Tehran has committed to returning commercial traffic via Hormuz to pre-war levels within a month following the agreement reached with the United States.
However, state television said Iran would manage ship traffic through Hormuz in cooperation with Oman. Reports stated that US military forces will withdraw from the vicinity of Iran and lift the naval blockade.
The reports come as Iran and the United States are wavering between a deal and a new wave of military tensions. US forces launched an offensive in southern Iran this week in a move the Pentagon described as defensive. Tehran has vowed to retaliate for the attacks.
This is an evolving story. Please check back for updates.
