Media reports suggest the temporary agreement would allow Iran to export up to 1 million barrels/day in exchange for Iran reducing its highly enriched uranium activities. During trading, U.S. oil fell 4.8% and Brent dropped 4.4%, not only wiping out gains since Saudi Arabia announced production cuts but also hitting a new weekly low. Updates in progress. News of a potential easing of Western sanctions and increased Iranian exports has ignited the oil market.

On the morning of Thursday, June 8, Eastern Time, media primarily covering the Middle East and North Africa cited insiders saying that the U.S. and Iran have made significant progress in talks on U.S. soil. The two parties are close to reaching a temporary agreement, with the U.S. waiving some sanctions restrictions in exchange for Iran reducing its activities involving highly enriched uranium.

Insiders claim that according to the agreement terms, Iran will pledge to halt uranium enrichment activities reaching 60% purity and above and will continue to cooperate with the International Atomic Energy Agency (IAEA) to monitor and verify its nuclear program. In exchange, the Iranian government will be permitted to export up to 1 million barrels of oil per day and gain access to its income and other frozen funds overseas.

Following the news, international crude oil futures plunged during trading.

Toward the end of U.S. stock early trading, U.S. WTI oil fell below the $70 mark, at one point nearing $69, with an intraday drop of over 4.8%. Brent oil fell below $74, with an intraday fall of nearly 4.4%. Not only did they both erase all gains since Saudi Arabia announced voluntary production cuts of 1 million barrels/day last weekend, but they also fell to intraday lows since last Thursday, June 1. Afterward, the drop in crude oil narrowed to within 4%.