Oil prices fell and then rose on Wednesday as investors weighed a preliminary deal between the United States and Iran amid uncertainty over its provisions.
Traders hope the deal, which Iranian and US officials were expected to sign on Friday, will lead to the quick reopening of the Strait of Hormuz. President Trump said he hoped the war with Iran would soon be in the “rearview mirror.” Neither country has made public the text of the agreement.
A full recovery in Middle East oil flows will take time, the International Energy Agency said on Wednesday, but the eventual rise in crude oil production, coupled with weaker global demand, could lead to a supply glut next year.
