Tehran has stated that the U.S. must lift its military restrictions on shipping in the Persian Gulf before the Iranian government will restore access to the Strait of Hormuz. The clarification comes as diplomatic efforts to end the U.S.-Iran war intensify, with a draft peace proposal currently circulating between negotiators from both nations.
The prospect of a deal triggered a selloff in energy markets on Monday, sending Brent crude oil futures down as much as 7% to around $105.43 per barrel. West Texas Intermediate fell more than 6% to $97.51, while wholesale fuel prices dropped nearly 20c per gallon. The dip in energy costs, combined with a three-month high ISM manufacturing PMI of 55.5, drove a rally in U.S. equities that added approximately $820B in market value.