Oil prices dip below $100 amid hopes of a deal between the U.S. and Iran

Brent crude oil prices fell sharply on Ma. 6, dropping below $100 a barrel - after Axios reported: the U.S. and Iran are close to an agreement to end the conflict.

International benchmark Brent for delivery in July fell more than 10% to $98.47 a barrel, while U.S. West Texas Intermediate crude fell more than 12% to $89.86.

Futures on the main indices of the U.S. stock market at the premarket on Ma. 6 against this background show growth: stock contracts on the S&P 500 add 0.98%, on the Nasdaq Composite - more than 1.7%, on the Dow Jones - 1.2%.

The yield on 10-year U.S. government bonds, a key benchmark for borrowing costs, fell by 7 basis points to 4.348%. The yield on two-year U.S. government bonds, which are more sensitive to Fed Funds rate expectations, fell more than 6 basis points to 3.863%. The yield on 30-year bonds fell by 5 basis points to 4.93%.

Gold jumped 3.4% to $4712.3 an ounce, while silver rose 6.5% to trade at $77.6.

According to Axios sources, the White House believes the U.S. and Iran are close to a one-page 14-point memorandum of understanding to end the war in the Middle East and set the framework for more detailed negotiations on Iran's nuclear program. A Reuters source from Pakistan (the country is mediating talks between Iran and the U.S.), also confirmed information that the two sides may soon finalize an agreement to end the war. "We will finalize this [deal negotiations] very soon. We are close," he said.

Among the terms of the proposed agreement are Iran's commitment to a moratorium on uranium enrichment, the U.S. agreement to lift sanctions on Tehran and unblock billions of dollars of frozen Iranian assets, as well as the mutual lifting of restrictions on transit through the Strait of Hormuz, writes Reuters. The current version of the document envisions declaring the end of the conflict and launching a 30-day phase of negotiations, Axios specifies.

"Equity investors still seem to be keen to deploy capital and are reacting to positive news from the Gulf," Reuters quoted ING's head of global markets Chris Turner as saying.

"Recent headlines indicate a significant change in sentiment and will likely be taken by markets as an unambiguously positive signal," said Daniela Hathorn, senior market analyst at Capital.com. Her opinion is quoted by Bloomberg. According to her, investors are likely to continue to take a more optimistic approach, gradually laying in asset prices waiver of previously considered worst-case scenarios.

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