Oil prices collapsed more than 8%: Axios reported that the US and Iran are close to a deal

Oil prices fell sharply after the publication of Axios that the U.S. and Iran have come to an agreement to end the conflict. According to the sources of the publication, the White House believes that the parties are close to signing a one-page memorandum of understanding, which should end the war and create a framework for more detailed negotiations on the nuclear program. However, the agreement has not yet been reached: the U.S. expects Iran's answers on several key issues in the next 48 hours, Axios writes.

Futures for Mark Brent with delivery in July fell by 8.1% and traded around $101 per barrel. U.S. West Texas Intermediate crude fell 9% to $93 per barrel.

Bloomberg Dollar Spot Index decreased by 0.8% to its lowest value since February 26, i.e. the pre-war level. The dollar weakened against almost all major currencies.

The gold price rose by 2.7%. However, warns Kelvin Wong, Senior Market Analyst at OANDA, "any signs of a new escalation of tensions between the sides will lead to profit taking in gold or short-term speculators closing their net long positions".

Futures on U.S. stock indices rose, with Nasdaq Composite contracts jumping the most - by 1.3%.

"The market continues to build de-escalation and easing [oil] supply constraints into prices," BNY senior macro strategist Jeff Yu told Bloomberg, "There's still a lot of turbulence ahead, but the general direction of travel seems to be clear.

On the eve, May 5, US President Donald Trump announced that the United States would suspend the operation "Project Liberty" to escort commercial ships through the Strait of Hormuz. The American leader explained this decision by the progress in negotiations with Iran. The operation lasted only one day and led to new military clashes. Washington has since had to insist that the fragile truce still holds, while Beijing, in a rare public comment on the conflict, warned the sides against returning to hostilities.

This article was AI-translated and verified by a human editor