Oil Futures Drop Over 5% on Iran-US Negotiation Speculation

International crude oil futures prices dropped more than 5% during early trading on the 27th before narrowing losses. The decline followed Iranian media reports of an alleged US-Iran memorandum framework, which the White House later denied as fabricated on social media.

Price Movements

New York Mercantile Exchange light crude oil futures for July delivery fell $6.12 to $87.77 per barrel, a decline of 6.52%. London Brent crude oil futures for July delivery dropped $5.42 to $94.16 per barrel, down 5.44%.

Iran-US Development

On the same day, Iranian media disclosed what it described as portions of a "preliminary informal document" representing the framework of a US-Iran memorandum of understanding. Markets reacted with optimistic expectations regarding US-Iran negotiation prospects. The White House subsequently posted on social media that the Iranian media report was inaccurate, stating the published memorandum of understanding was "purely fabricated."