WTI Crude Plunges 13.3% to $88.66, Stabilizes Above $95 on Middle East Peace Talks

On Thursday, May 8, WTI crude oil futures plunged 13.3% to $88.66 per barrel before stabilizing above $95, as investors assessed the prospects of a Middle East peace agreement. According to reports, the U.S. transmitted a one-page memorandum of understanding to Iran through Pakistani intermediaries aimed at formally ending the conflict and paving the way for gradual reopening of the Strait of Hormuz. Tehran confirmed it is reviewing the proposal and is expected to respond within days.

Meanwhile, latest data showed U.S. crude oil exports surged to a record high last week as countries increasingly turned to American supplies amid conflict-related oil shortages.