Iran and Oman Drafting Strait of Hormuz Passage Agreement, Oil Prices Drop, US Stocks Rebound

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On April 2, according to the Islamic Republic News Agency (IRNA), Iranian Deputy Foreign Minister Gharibabadi stated that Iran is drafting a passage agreement for the Strait of Hormuz with Oman. Following this news, oil prices fell, with WTI crude oil briefly dropping below $107 per barrel and Brent crude reaching a low of $103.5 per barrel. Spot gold rose above $4,700 per ounce. All three major US stock indices rebounded, with the Nasdaq recovering its previous 2% loss.

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