What was the expectation that caused oil prices to drop last week?

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Oil prices fell last week because traders expected an imminent peace deal that could reopen the Strait of Hormuz.

Oil prices dropped more than 11 per cent over the week because markets were hoping for an imminent peace agreement. That expectation centred on the reopening of the Strait of Hormuz, a route through which a significant portion of the global oil supply passes.
The fall was tied to peace hopes in the Middle East war

The decline was driven by expectations that a deal to end the Middle East war could be reached soon. Those hopes pushed crude lower over the week before markets reopened on June 1.
The Strait of Hormuz was the key supply route in focus

The Strait of Hormuz matters because a large share of global oil moves through it. Any prospect of it reopening was enough to weigh on prices, including West Texas Intermediate and Brent crude.
Prices later rebounded when the tone of talks changed

When markets reopened, oil prices rose again after reports that the United States had hardened its negotiating terms with Iran. West Texas Intermediate gained 2.5 per cent to US$89.60 a barrel, while Brent crude traded around US$93.16 for August delivery, up about 2.2 per cent from Friday’s close.

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What was the expectation that caused oil prices to drop last week?

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