US-Iran Hormuz Deal Nears, Oil Plunges Below $100 on Supply Relief Hopes

Oil prices tumbled sharply below $100 per barrel on reports of an imminent U.S.-Iran memorandum to reopen the Strait of Hormuz, potentially unlocking 14 million bpd of disrupted supply and easing months-long tensions. The crisis began with Israel's March 18 strike on South Pars gas field, surging Brent over $111/bbl amid Iran's blockade of the 17-20 mbpd strait (20% global supply) and U.S. seizures of 20.3 million bbl Iranian crude. Trump's May 3 'Project Freedom' to escort ships dropped WTI to $100.22, but Iran's warship blocks prompted a May 5 pause, further dipping prices; now diplomatic progress signals de-escalation.