US Oil Prices Plunge 4% as Washington Proposes 15-Point Middle East Ceasefire Plan

U.S. crude oil futures tumbled by approximately 4% in early Wednesday trading sessions as diplomatic hopes gained momentum. The price drop follows reports that Washington has proposed a formal 15-point ceasefire plan to Tehran to end the Middle East conflict and ease supply disruptions. This diplomatic initiative aims to mitigate regional tensions and reduce the geopolitical risk premium that recently pressured energy markets. Investors responded by unwinding positions after previous threats to energy infrastructure and the Strait of Hormuz had driven prices to record highs. The proposal marks the first significant signal of potential de-escalation after 11 days of heightened regional hostilities. Market participants are now focusing on Tehran's response, which is expected to dictate the near-term trajectory for WTI and Brent prices.

Sources:reuters.comfoxbusiness.commarketwatch.commarketwatch.comwsj.comft.comcnbc.com