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US Oil Update: Crude Dips as Iran State TV Reveals Details of Draft Peace Framework

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Crude oil futures dipped on Wednesday following a report by Iran State TV, reported by media outlets, that a draft peace framework it has seen would require Iran to normalize shipping via the Strait of Hormuz within a month of its signing.

Front-month West Texas Intermediate crude futures dipped 4.8% to $89.39 per barrel, while Brent futures fell 3.29% to $95.56/bbl.

The draft would also require the US would to lift its naval blockade and withdraw nearby military forces, according to the media reports.

Macquarie strategists note that a credible, verified deal could trigger a sharp, short-lived sell-off, knocking roughly $20 off oil prices within a week.

However, energy trading desks remain deeply skeptical following several false dawns in the conflict.

HFI Research emphasized that due to the logistics of a 60-day negotiation window, no meaningful volume of shut-in Middle Eastern crude will set sail before mid-summer, even if a deal is signed immediately.

The market now awaits official inventory data from the US Energy Information Administration.

The diplomatic rumors follow a sharp military escalation on Tuesday, when US Central Command launched "self-defense" strikes against Iranian missile batteries and mine-laying fast-attack craft.

Iran's Islamic Revolutionary Guard Corps retaliated immediately, reportedly engaging a US F-35 fighter jet and downing several American surveillance drones.

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