Oil Price Plunges After New US-Iran Deal Report
Oil prices dipped below $100 a barrel on Wednesday after new reports suggested a deal between the U.S. and Iran to end the war in the Middle East could be on the horizon.
Brent crude, the international benchmark, fell below $98 a barrel-its lowest price in two weeks-roughly a week after it surged to more than $126 a barrel at the end of April.
This was its highest point since Russia’s full-scale invasion of Ukraine in early 2022, and was prompted by reports that the White House was looking at new options to strike Iran despite a ceasefire that has been in place since April 8.
The White House is nearing an agreement with Iran on a one-page document, Axios reported on Wednesday, citing anonymous officials who described this as the closest the two sides have been to an deal since the start of the Iran war on February 28.
Reuters separately reported Washington and Tehran inching toward initial terms, citing an anonymous Pakistani source. Pakistan has been a key broker of talks between the two countries.
Newsweek contacted the White House via email on Wednesday about a possible new framework for a deal.
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U.S. President Donald Trump had said late Tuesday the U.S. military would no longer accompany stranded vessels out of the vital Strait of Hormuz shipping route despite announcing plans for U.S. warships and aircraft to “guide” cargo ships through the waterway under threat of Iranian attack.
Roughly 1,550 vessels have been unable to move through the strait since Iran vowed to strike ships it deemed unfriendly following initial American and Israeli attacks on the country.
Trump said on Tuesday that the U.S. initiative, dubbed Project Freedom, would be “paused for a short period of time” to see whether the U.S. and Iran could reach a peace agreement.
This is a breaking story and will be updated.
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This story was originally published May 6, 2026 at 5:37 AM.