- Crude oil prices dropped over 5% amid reports of a draft peace deal sent to the US
- Brent crude traded near $89.6 and WTI around $86 per barrel after hitting intraday lows
- US administration gave preliminary acceptance to the draft aimed at ending hostilities
Crude oil prices eased on Tuesday following reports claiming that a draft agreement aimed at ending hostilities has been sent to the United States for review, which it found to be preliminarily acceptable.
Global benchmark fell over 5% to an intraday low of $89.57 per barrel for the first time since April, while the West Texas Intermediate slumped 6% to a low of $85.9 per barrel. As of 8 p.m. IST, Brent pared some losses to trade 4.8% lower at $89.6 and WTI traded at $86 per barrel.
The proposed deal has received preliminary acceptance from the US administration, potentially marking progress in negotiations focused on de-escalation and regional stability, Sky News Arabia's reported, citing a source.
مراسلنا عن مصدر خاص لسكاي نيوز عربية: تم إرسال صيغة الاتفاق إلى الجانب الأميركي لإطلاعه عليها مع التأكيد بأن الصيغة مقبولة مبدئيا من قبل الإدارة الأميركية
— سكاي نيوز عربية-عاجل (@SkyNewsArabia_B) June 9, 2026
While details of the draft were not immediately disclosed, the development comes amid intensified international attempts to prevent further escalation in the region.
The reported progress aligns with ongoing US-led diplomatic initiatives focused on resolving key points of contention and restoring stability.
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Negotiations have been particularly complex due to strategic issues surrounding critical maritime routes, including the Strait of Hormuz, a vital corridor for global energy supplies and international trade.
Diplomatic channels have remained active in recent weeks as regional and international stakeholders seek a negotiated settlement to the conflict.
Any agreement would likely involve security guarantees, measures to reduce military tensions, and mechanisms to ensure freedom of navigation through key waterways.
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The preliminary acceptance of the draft by Washington, if confirmed, could provide momentum to the broader peace process. However, officials have yet to publicly comment on the contents of the proposal or indicate a timeline for final approval.
Energy Shocks And Crude Oil Jump
Crude oil prices went into a frenzy and spiralled dramatically ever since the United States and Israel launched joint airstrikes against Iran on Feb. 28, 2026. The surge in prices was caused by the closure of the Hormuz Strait, a key maritime shipping route in West Asia.
Global benchmark brent crude has time and again crossed the landmark $120 per barrel level in the past two months due to one of the biggest energy disruptions in history.
However, the prices have shown some recovery in the past few days as America and Iran continue to hold truce negotiations.
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