WTI crude oil slides as draft US-Iran agreement eases Strait of Hormuz fears

West Texas Intermediate crude oil fell below $100 a barrel in late May and was trading near $97.29 on May 22, 2026, according to market analysis. The drop followed reports of a draft US-Iran agreement aimed at reopening the Strait of Hormuz, a strategic waterway through which about one-fifth of the world's petroleum passes.

Analysts at Fxdailyreport cited the draft deal as the primary catalyst for the decline, saying it is easing fears of a supply disruption that had kept prices elevated above $100. The Strait of Hormuz has been a flashpoint in recent months after Iran threatened to restrict transit in response to sanctions and military tensions.

WTI crude had been holding above $100 resistance for several sessions before breaking lower. The price was testing a technical triangle support level near $97.29 as of the most recent analysis, with traders watching whether the support holds or gives way.

Neither the US State Department nor Iranian officials have publicly confirmed the existence of a draft agreement. The analysis relied on uncorroborated reports, and the price move has yet to be validated by an official statement from either government.

The immediate question is whether the reported draft proceeds to a formal framework or collapses amid continuing disputes over sanctions and nuclear enrichment. The Strait of Hormuz remains the central risk factor for crude supplies in the weeks ahead.