Keep pulling the thread on United States.
The United States has presented a memorandum of understanding to Iran that would gradually reopen the Strait of Hormuz and lift the American blockade on Iranian ports.
Iran is expected to send a response to the U.S. memorandum of understanding via mediator Pakistan within the next two days.
WTI crude oil prices dropped approximately 7% during New York trading following news of a potential U.S.-Iran deal.
Dated Brent physical oil prices have fallen to approximately $104 per barrel, a decrease of about 10% in a single day.
U.S. crude oil exports reached a record 5.2 million barrels per day in April, according to data from Kepler.
The upcoming summit between President Trump and Xi Jinping is a key deadline pressuring the Trump administration to resolve the conflict with Iran.
A potential negative outcome of a U.S.-Iran deal is the U.S. ceding management of the Strait of Hormuz to Iran, providing Tehran with a new revenue stream and coercive political control.
Iran's nuclear program still has an unresolved issue of approximately 440 kilograms of highly enriched uranium that needs to be accounted for.
The average price for U.S. gasoline has risen to approximately $4.50 per gallon, the highest level since 2022.
The markets for jet fuel and diesel are under the most strain due to physical tightness and the risk of shortages.
Analysts and traders believe that shipping traffic through the Strait of Hormuz will not return to pre-war levels anytime soon.
Risk management departments at major oil companies based in the US and UK will likely prohibit paying transit tolls to Iran for passage through the Strait of Hormuz.