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Crude Oil Prices Drop: America and Iran seem to be getting closer to an agreement to end the tension in the Middle East. This reduced the concern of long-term blockage in the Strait of Hormuz. After this news, crude oil prices fell by almost 10 percent on Wednesday.

America’s benchmark West Texas Intermediate (WTI) fell by about 10 percent in early trade, but later recovered slightly to reach about $ 94.32 per barrel. At the same time, international benchmark Brent crude fell by about 7 percent to about $ 102.14 per barrel. Brent crude was trading around $103 and WTI around $96 a barrel later, The New York Times reported, as investors reacted to signs of easing tensions in the Gulf.

America-Iran ready for agreement

The market rally came after a report by Axios said the US and Iran were close to agreeing on a short-term deal aimed at ending the conflict that began in late February. The report said that major progress could be made in the next 48 hours.

Donald Trump stopped Project Freedom

US President Donald Trump said that America’s ‘Project Freedom’ Is stopping. It was a naval operation that was launched earlier this week to protect merchant ships passing through the strait. According to the report, after this campaign, Iran also launched new attacks on merchant ships and the US Navy.

Trump wrote on social media that if Iran accepts the previously agreed terms, then this conflict can end and the Strait of Hormuz will be open to everyone, including Iran. He also warned Iran that if an agreement is not reached, the bombings may begin again, and may be more rapid and on a larger scale than before.

Iranian sanctions continue on Hormuz

Although there was some relief in the market, tension still remains in the Gulf region. According to reports, on Wednesday, Iran’s Revolutionary Guard warned ships trying to pass through the Strait of Hormuz that the route was still closed.

Abbas Araghchi meets Chinese Foreign Minister

Meanwhile, China has also started diplomatic efforts. According to the news, China’s Foreign Minister Wang Yi met Iran’s Foreign Minister Seyed Abbas Araghchi in Beijing and appealed for stability in the region. China is a big buyer of Iranian oil.

Due to this conflict, fuel prices have increased significantly in recent weeks. The average price of petrol in America has reached $ 4.54 per gallon, while the price of diesel has reached $ 5.67 per gallon.