Oil Falls Below $100 on Hormuz Reopening Hopes — NRG-IA

Hormuz Remains the Epicenter of Global Oil Pricing The oil market reacted immediately to signals of a potential US–Iran agreement. Brent and WTI crude prices fell sharply, with Brent dropping below the $100-per-barrel threshold after several weeks in which geopolitical risk surrounding the Strait of Hormuz kept prices elevated. Reuters reported that oil lost over $5 per barrel, with Brent trading around $98 per barrel and WTI around $91 per barrel. In another market update, Reuters indicated a drop of over 6% for Brent, down to approximately $97.75 per barrel, and a decline in WTI toward $90.87 per barrel. This is a risk correction. Oil prices directly price in the probability of Hormuz returning to a fully functional shipping route for crude oil and LNG shipments. When this probability rises, buying pressure eases, and the barrel quickly sheds part of its geopolitical premium. Reopening Hormuz Would Reshape Logistics, Insurance, and Price Expectations The Strait of Hormuz is one of…