Oil deepens losses, Brent slips below $100

Brent crude was trading down 2.1% at $99.12 a barrel, at 12 noon Makkah time.

Oil deepened its losses today, May 7, after falling by 7% in the previous session, as markets assessed the likelihood of an end to the war between the US and Iran.

Brent crude was trading down 2.1% at $99.12 a barrel, at 12:00 noon Makkah time. West Texas Intermediate (WTI) fell 2.3% to $92.92 a barrel.

This followed a report that understandings have been reached to ease the US blockade on Iranian ports in exchange for a gradual reopening of the Strait of Hormuz, paving the way for the return of regular traffic of tankers and commercial vessels in the coming period.

Priyanka Sachdeva, Senior Market analyst at Phillip Nova, said that oil markets have been caught between diplomatic efforts and the risk of unrest for two months, Reuters reported.

She added that any formal agreement could lead to a drop in prices, as the geopolitical premium quickly fades from the market.