Oil futures fell 2.0% to $85.94 per barrel after President Trump hinted at a U.S.-Iran peace deal that could reopen the Strait of Hormuz.

The potential agreement promises to lift fears that Iran could block the waterway, through which one‑fifth of global oil flows. Analysts say de‑escalation could ease supply disruptions.

Front‑month WTI crude futures dropped to $85.94 as traders priced in a calmer geopolitical environment. The move reflects market confidence that any deal will reduce regional risk.

Market watchers note the price shift signals a tangible shift in risk assessment, with investors recalibrating exposure to Middle East oil supply routes.