Oil falls for second day in a row. Investors bet on Strait of Hormuz reopening

Oil prices are down around five percent today. Oil is falling as hopes are revived for a peace deal between the United States and Iran that could gradually reopen the Strait of Hormuz, Reuters reports. Today's drop follows Wednesday's plunge of more than seven percent to a two-week low.

North Sea Brent crude is down 4.9 percent to around 96.30 dollars per barrel at about 15:15 CEST. US West Texas Intermediate (WTI) crude is down 5.1 percent at the same time, trading at around 90.23 dollars per barrel.

Analysts are taking note of a report by the Saudi news channel Al-Arabiya, which says an agreement has been reached to lift the US blockade in exchange for the gradual reopening of the Strait of Hormuz. They also point to another report, by Israel's Channel 12 television, that Iran has agreed to transfer its stockpile of uranium enriched to 60 percent to a third country.

"Confirmation of an agreement would likely quickly bring the price of Brent back into the 80-to-90-dollar range. If the talks collapsed or Trump returned to imposing sanctions, the price would immediately climb above 120 dollars per barrel," said Ole Hvalbye, an analyst at SEB Research.

Oil prices in dollars per barrel (about 159 litres)