Oil prices fall after Iranian news agency says US and Iran may be 'hours' from announcing deal

May 22, 2026 - 02:05

Oil prices slid sharply on Thursday after a report from an Iranian news agency suggested the United States and Iran could be "hours" away from announcing a breakthrough agreement. The report, which cited unnamed diplomatic sources, sparked a selloff in crude markets as traders priced in the possibility of increased global supply.

The potential deal is expected to involve a prisoner swap and the unfreezing of billions of dollars in Iranian assets held abroad. In exchange, Iran would reportedly curb its uranium enrichment activities, though details remain scarce. The news reversed earlier gains that had been driven by comments from Iran's supreme leader, who insisted that the country's stockpile of enriched uranium must remain within its borders.

Brent crude, the international benchmark, fell by more than 2% in afternoon trading, while West Texas Intermediate dropped to around $80 per barrel. Analysts noted that any agreement that eases sanctions on Iranian oil exports could add hundreds of thousands of barrels per day to a market already grappling with supply concerns.

The White House has not confirmed the report, and diplomats in the region have cautioned that talks remain fragile. Still, the rapid price movement underscores how sensitive oil markets remain to any sign of diplomatic progress between the two longtime adversaries.