Oil plunges to $89 per barrel after Iran reports that peace deal would reopen Strait of Hormuz in 1 month

Oil prices plunged to $89 a barrel Wednesday following reports that the proposed Iran-US peace deal would see the Strait of Hormuz being reopened in just one month.

Crude futures were at more than $107 a barrel just over a week ago.

The new fall, a 5.6% drop, came as the market held out hopes for a peace deal to bring the four-month conflict to an end.

One of the major driving factors appeared to be an Iranian state TV report on Wednesday on a draft of an initial, unofficial framework for a memorandum of understanding (MOU) with the US on ending the conflict.

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