Oil markets tumbled on Wednesday as traders bet on cooling tensions between Washington and Tehran. Both crude benchmarks shed more than 7 percent in heavy trading.
Axios reported that negotiators from the two nations were nearing a breakthrough agreement. President Trump had earlier halted "Project Freedom," his initiative to reopen the Strait of Hormuz, signaling openness to talks.
Trump noted "great progress" in diplomatic efforts. His decision to pump the brakes fueled optimism across global financial markets.
Brent and U.S. crude futures both fell sharply. The collapse accelerated a downward trend that had already begun this week.
American motorists aren't seeing relief at the pump yet. Regular gasoline averaged $4.54 a gallon Wednesday, according to AAA data.
That's a stark jump from pre-conflict levels below $3 per gallon. The lag between crude prices and retail costs has frustrated drivers nationwide.
Wall Street opened strongly higher on the de-escalation news. Tech stocks led the rally, with investors banking on a negotiated settlement in the Middle East.
Asian markets posted gains throughout the session. European bourses also rallied, catching the wave of optimism sweeping through trading floors.
