By Adam Clark and Anita Hamilton
Oil prices continued to fall Thursday amid ongoing negotiations over a potential U.S.-Iran peace deal.
Shortly after 10:30 a.m. Eastern time on Thursday, Brent crude futures, the international standard, were down 4.3% at $96.88 a barrel. West Texas Intermediate futures were down 4.6% at $90.72 a barrel. Brent settled at its lowest level since April 21 on Wednesday following multiple reports a deal between Washington and Tehran could be close.
The U.S. and Iran are working with mediators to create a 14-point memorandum of understanding for a monthlong period of discussions over ending the war with talks between the two parties potentially resuming as early as next week, The Wall Street Journal reported, citing people familiar with the matter.
"We've had very good talks over the last 24 hours, and it's very possible that we'll make a deal," President Donald Trump told reporters Wednesday.
Iran's foreign ministry spokesman Esmaeil Baqaei said the proposal remained "under review" and Tehran would communicate its position to mediator Pakistan.
"The market is betting on an agreement, mostly as a continuation of the war is not a stable outcome, and does not really suit either side," wrote Padhraic Garvey, who leads ING's research team for the Americas. "But we're not as comfortable as the market currently is."
Commodity analysts at RBC Capital Markets also noted the disconnect between falling oil prices without any change in supply. "It remains far from clear that there is any material movement toward reopening the Strait of Hormuz, or if we are instead stuck in a rebranded 'ceasefire with no oil' purgatory for the time being," they wrote Thursday morning.
They also warned that "the IRGC is highly unlikely to agree to any deal that does not include a right to enrich uranium."
Write to Adam Clark at adam.clark@barrons.com and Anita Hamilton at anita.hamilton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 07, 2026 11:01 ET (15:01 GMT)
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