US and Iran Rumored to Reach Deal at G7 Meeting. Crude Oil Prices Fall to Mid-April Levels, WTI Futures Slump About 4%

TradingKey - On June 12, the two major crude oil benchmarks plunged after Iran signaled a willingness for peace talks, with WTI crude oil futures dropping more than 4%.

According to media reports, the Iranian Foreign Minister stated that Iran and the U.S. have never been closer to reaching a memorandum of understanding. However, he also noted that the media should avoid speculating on its contents until it is finalized. Following their responsible and transparent approach, all details will be shared with the public at the appropriate time.

As of press time, WTI crude oil futures were down 3.85% at $84.33, falling to levels last seen in mid-April; Brent crude oil futures were down 3.78% at $86.98.

[Source: FutuBull]

On the news front, G7 officials stated that the U.S. and Iran are expected to move closer to a peace agreement as the G7 meeting approaches.

According to senior officials, as Group of Seven (G7) leaders prepare to hold a summit next week, the U.S. and Iran are gradually moving closer to signing an agreement regarding the reopening of the Strait of Hormuz. One G7 official said a senior Iranian official hinted last night at a high probability of reaching a deal. Another G7 official stated that the agreement is likely to take the form of a memorandum of understanding rather than a final treaty.

It is reported that this year's G7 summit will be held from June 15 to 17 in Evian, in the French Alps.

People familiar with the matter revealed that nearby Geneva, Switzerland, is being proposed as a potential location for the signing of the agreement, with a ceremony possibly taking place as early as Sunday. However, officials cautioned that Iran has not yet confirmed its readiness for a signing ceremony, and communication between the Iranian government and the U.S. has progressed slowly since the outbreak of war in February. Another G7 official confirmed signs that the U.S. and Iran are nearing an agreement but also warned that previous diplomatic progress had failed to materialize.