Oil Dives 5% as Bessent Signals Imminent Strait of Hormuz Deal

Iran has not confirmed any of it. Recent reports indicated Tehran could allow European Union nations to remove mines from the strait, a step it previously rejected. The potential involvement of EU states, oil traders said, could act as a guarantee for both sides that any ceasefire would hold long enough for comprehensive nuclear talks.

WTI broke below the support band of $77.50–$78.00 that had held for two weeks. The next floor sits at $73.00–$73.50, a zone last tested in February. Brent is testing $77.50–$78.00 support with $75.50 visible if it clears. Both benchmarks need to reclaim the $80 level to stabilize. On the upside, WTI would need a close above $81.50–$82.00 to suggest the selloff was overdone. Brent faces its 50-day moving average at $84.64 if it can climb back through $82.50 first.

Natural gas moved lower as well, sliding below $2.70 per million British thermal units. The story there is domestic production, which has stayed elevated through the spring maintenance season. Storage levels remain above the five-year average, muting any rally attempt. Prices tried to break the $2.75–$2.80 resistance zone and failed. Wednesday's break below $2.70 opens the path to $2.50–$2.55 support. The relative strength index sits in neutral territory, meaning there is room to fall further if the macro mood turns risk-off. Natural gas would need to reclaim $2.80 with conviction to target the $3.00–$3.05 level.

Oil traders will track official statements from Tehran in the coming hours. Any denial or delay from Iran could trigger a snapback rally that retests $78–$80 for WTI. Confirmation of a deal with a timeline for reopening would accelerate the selloff toward the $73 area. Bessent's timeline of "today or tomorrow" compresses the event window. Traders said liquidity could drop sharply ahead of any announcement, amplifying moves in either direction.