World oil prices dived Wednesday and stock markets rallied on fresh hopes for an end to the Iran war.
Washington believes it is close to reaching an agreement with Iran to reopen the key Strait of Hormuz and end the conflict, US news outlet Axios reported, citing two US officials.
International oil benchmark Brent North Sea plunged almost 11% to under $100 a barrel.
The main US contract, West Texas Intermediate, dived more than 12% to under $90 a barrel.
European gas prices slumped 11%.
That boosted equities, with London’s benchmark FTSE 100 index jumping 2.3% around midday.
In the eurozone, the Paris and Frankfurt markets won around three percent.
Nothing agreed yet
Washington believes it is close to reaching an agreement with Iran to reopen the Strait of Hormuz and end the war, US news outlet Axios reported Wednesday, citing two US officials.
According to Axios, the two sides are close to agreeing on a “one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations.”
It said the deal would involve Iran committing to a moratorium on nuclear enrichment and the United States agreeing to release billions of dollars of frozen Iranian funds.
Washington is reportedly awaiting a response from Tehran on several key points in the next 48 hours.
“Nothing has been agreed yet, but the sources said this was the closest the parties had been to an agreement since the war began,” Axios said.
US President Donald Trump has repeatedly said that an agreement is close, without ever reaching one.
Trump launched “Project Freedom” on Monday to help vessels leave the strait.
But he suspended the operation after just one day following requests from “mediator Pakistan and other countries,” saying “Great Progress has been made toward a Complete and Final Agreement” with Tehran.
In its current form, the agreement would declare an end to the war and the start of a 30-day period of negotiations, Axios said.
The negotiations could take place in Islamabad or Geneva, it added.
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