Oil falls after Iranian television announces preliminary understanding document Washington Tehran

Oil prices accelerated their decline on Wednesday, coinciding with the circulation of a document outlining a 14-point framework for a potential understanding between Iran and the United States.

Brent crude fell 5% to below $95 per barrel, following the publication by Iranian state broadcasting of an unofficial preliminary document containing a 14-point framework for a potential understanding between Iran and the United States. The authority stated that the draft memorandum of understanding stipulates the withdrawal of US military forces from Iran's vicinity and the lifting of the naval blockade.

US crude also deepened its losses, falling more than 5% below $89 per barrel, while the Bloomberg spot dollar index declined 0.1% to its lowest level of the session.

The draft published by Iranian state broadcasting states that Tehran will take charge of managing vessel traffic through the Strait of Hormuz in cooperation with the Sultanate of Oman, while Tehran pledges to restore commercial vessel transit through the strait to pre-war levels within one month, with military vessels excluded from the draft agreement.

The draft stipulates that if a final agreement is reached within 60 days, it will be adopted in the form of a binding United Nations Security Council resolution.