US crude oil futures plunged 3.7% to $69.23 per barrel, driven by news of a US-Iran peace deal that analysts expect to stabilize supply from the region. The move represents the largest single-day drop in recent months, reflecting market adjustment to reduced geopolitical risk premiums.
Trading volumes surged as institutional investors rotated out of energy positions, with open interest in crude futures declining 2.1% on the day. The deal, which lifts sanctions on Iranian oil exports, could add up to 1 million barrels per day to global supply, according to market estimates cited by traders.
Regulatory bodies have not yet commented on the agreement, but the US State Department's swift confirmation signals a major shift in Middle East policy. The Commodity Futures Trading Commission (CFTC) is monitoring for excessive speculation, though no formal inquiry has been announced.
The oil price drop places WTI near its 200-day moving average, a technical support level. Energy sector ETFs lost 4% in early trading, while airline and transport stocks rallied on lower fuel cost expectations. Bitcoin, by contrast, slipped 0.8%, suggesting a flight from risk assets.
Some analysts caution the price move may be overdone, noting that any implementation delay or Iranian compliance issues could reverse gains. "Markets are pricing in a best-case scenario," said one energy strategist, pointing to the uncertainty around the deal's ratification timeline.