U.S. crude falls below $80 as oil prices sink on Hormuz deal hopes

JUST IN: US crude falls below $80 a barrel as oil prices sink on hopes of an Iran-Oman deal to secure a transit route through the Strait of Hormuz, with Brent down over 3% on the day.

US crude just dropped below eighty dollars a barrel.

Brent fell more than three percent to just under eighty six, and the reason is peace breaking out in the world's most important oil chokepoint. Iran and Oman are working on a shipping route through the Strait of Hormuz, the waterway that carried a fifth of the world's oil before the war shut it down in February. You can see the strait here, and every trader on earth is staring at the same map.

Add in US sanctions on Iran landing softer than anyone expected, and the war premium is draining out of this market fast. Tankers that have been idling for months are suddenly worth watching again.

Here's what I'd hold onto though. The corridor is temporary, the permanent deal doesn't exist yet, and Washington hasn't ruled out other interventions. Cheap oil built on a handshake is only as strong as the handshake.

This is Sara White, reporting for HIT.