Oil prices slump on report Iran could restore Hormuz traffic within a month

(Sharecast News) - Oil prices slid further on Wednesday afternoon following a report that Iran is committed to restoring the number of commercial transit ships through the Strait of Hormuz to pre-war levels within a month.

At 1338 BST, Brent crude was down 4.6% at $94.99 a barrel, extending losses.

According to Reuters, citing Iran's state TV, Tehran has obtained a draft of an initial unofficial framework for a memorandum of understanding with the US.

Under the framework, Iran would restore commercial shipping through the Strait of Hormuz to pre-war levels within a month, while the US would withdraw military forces from Iran's vicinity and lift a naval blockade.