-- Crude oil prices dropped further on Thursday as the market continues to anticipate a peace deal that could reopen the Strait of Hormuz.
Brent crude at last look fell 2.4% to US$98.86/barrel and West Texas Intermediate crude lost 2.5% to $92.67/barrel. Understandings have been reached to ease the U.S. blockade of Iranian ports in exchange for a gradual reopening of the strait, Reuters said in a Thursday report, citing Saudi Arabia's Al Arabiya news agency. Reuters said it could not immediately verify the report.
Iran previously said it was evaluating a U.S. peace proposal that could formally end the war, according to sources, the report said.
"If a formal deal eventually materialises, oil prices could witness a free fall as geopolitical premiums rapidly evaporate from the market. However, any fresh signs of attacks on oil infrastructure or escalation in the Middle East could easily trigger another parabolic spike in crude prices," Reuters quoted Priyanka Sachdeva, senior market analyst at Phillip Nova, as saying.