{"id":62339,"date":"2026-05-25T13:38:14","date_gmt":"2026-05-25T17:38:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-prices-slump-as-us-iran-near-deal-to-reopen-strait-of-hormuz-trump-envoys-head-to-israel\/62339\/"},"modified":"2026-05-25T13:38:14","modified_gmt":"2026-05-25T17:38:14","slug":"oil-prices-slump-as-us-iran-near-deal-to-reopen-strait-of-hormuz-trump-envoys-head-to-israel","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-prices-slump-as-us-iran-near-deal-to-reopen-strait-of-hormuz-trump-envoys-head-to-israel\/62339\/","title":{"rendered":"Oil Prices Slump as US-Iran Near Deal to Reopen Strait of Hormuz; Trump Envoys Head to Israel"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>WTI Crude Oil dropped below $90 per barrel<\/strong> for the first time since early May following reports of a draft agreement to reopen the <strong>Strait of Hormuz<\/strong>.<\/li>\n<li><strong>A 60-day ceasefire extension<\/strong> between the U.S. and Iran is reportedly on the table, including a <strong>30-day window to clear mines<\/strong> and restore free navigation.<\/li>\n<li><strong>Steve Witkoff and Jared Kushner<\/strong> are traveling to Israel to discuss the potential U.S.-Iran understanding, which includes phased easing of <strong>sanctions on Iranian oil<\/strong>.<\/li>\n<li><strong>Iran\u2019s Tasnim News Agency<\/strong> denied reports that Tehran has agreed to export high-level enriched uranium, calling such claims &quot;psychological operations.&quot;<\/li>\n<li><strong>U.S. officials signaled potential support<\/strong> for an escalation of Israeli military actions against <strong>Hezbollah<\/strong>, citing the group\u2019s refusal to halt attacks.<\/li>\n<\/ul>\n<h2>Oil Markets React to Hormuz Reopening Prospects<\/h2>\n<p><strong>WTI Crude Oil (<a href=\"\/stock\/USO\">USO<\/a>)<\/strong> fell below the <strong>$90 per barrel<\/strong> threshold on Monday as details emerged regarding a potential breakthrough in U.S.-Iran negotiations. According to reports from <em>Nikkei<\/em>, a draft agreement could see the <strong>Strait of Hormuz<\/strong> reopened to safe navigation within <strong>30 days<\/strong>, ending a de facto shutdown that has throttled global energy supplies.<\/p>\n<p>The proposed deal includes a <strong>60-day extension<\/strong> of a ceasefire originally reached in April. Market participants are closely watching the phased easing of sanctions on <strong>Iranian oil exports<\/strong>, which remains contingent on Iran meeting specific maritime and security commitments.<\/p>\n<h2>High-Level Diplomacy in Israel<\/h2>\n<p><strong>Steve Witkoff<\/strong> and <strong>Jared Kushner<\/strong> are reportedly heading to Israel to brief officials on the potential Washington-Tehran understanding. This diplomatic push comes as the <strong>Trump Administration<\/strong> seeks to stabilize the <strong>Strait of Hormuz<\/strong> while maintaining pressure on Iran\u2019s nuclear program.<\/p>\n<p>Despite the progress on maritime issues, <strong>Tasnim News Agency<\/strong> reported that disputes persist regarding the <strong>U.S. military presence<\/strong> around Iran. Furthermore, Tehran has flatly denied reports from <em>Al-Hadath<\/em> claiming it agreed to remove <strong>high-level enriched uranium<\/strong> from its territory, asserting that no such commitment exists in the current memorandum.<\/p>\n<h2>Regional Tensions and Defense Production<\/h2>\n<p>While energy markets found relief, regional security remains volatile as a <strong>senior U.S. official<\/strong> suggested the administration may back an escalation of Israeli actions against <strong>Hezbollah<\/strong>. The official noted that the group has ignored multiple ultimatums to cease fire, stating that <strong>Israel<\/strong> will not be expected to &quot;passively absorb&quot; continued attacks on its citizens.<\/p>\n<p>In Eastern Europe, <strong>President Volodymyr Zelenskiy<\/strong> expressed frustration over the pace of defense cooperation with Washington. Zelenskiy noted that talks on boosting <strong>Ukraine\u2019s anti-missile defense production<\/strong> have seen &quot;little progress,&quot; though financial aid from Europe continues to support local efforts. This lack of momentum could impact major defense contractors such as <strong>Lockheed Martin (<a href=\"\/stock\/LMT\">LMT<\/a>)<\/strong> and <strong>RTX Corporation (<a href=\"\/stock\/RTX\">RTX<\/a>)<\/strong> as they navigate shifting U.S. leadership priorities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways WTI Crude Oil dropped below $90 per barrel for the first time since early May following reports of 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