Oil prices tumbled nearly 5% on Wednesday after Iranian state television aired details of a potential peace proposal with the US. Brent crude fell to $95 a barrel as markets reacted to reports that Iran might restore shipping through the Strait of Hormuz within a month under a proposed 60-day ceasefire extension. The White House quickly dismissed the report as a "complete fabrication," casting doubt on the negotiations.

According to the Iranian broadcast, the deal would involve the US lifting its naval blockade on Iranian ports and the gradual reopening of the strait, through which about a fifth of global oil passes. Tehran reportedly wants half of its $24bn in frozen overseas assets released in the first phase. However, US officials have been cautious, with Secretary of State Marco Rubio noting ongoing "back and forth" over specific language in the draft agreement.

President Trump initially signaled proximity to a deal but later urged negotiators "not to rush" and emphasized both sides must "take their time and get it right." The negotiations come after Iran significantly slowed vessel traffic through the strait following the February 28 conflict onset. Iran's top negotiators returned from Doha talks to brief leadership on progress.

The market reaction underscores how sensitive energy prices remain to diplomatic developments in the region. With the strait's critical role in global oil transport and $24bn in Iranian assets at stake, investors are watching closely despite conflicting signals from both sides about actual progress toward a final agreement.