U.S. oil falls below $89 on report Iran agreement would restore Hormuz traffic in one month

U.S. crude oil prices fell about 6% Wednesday on a report Iran would restore traffic through the Strait of Hormuz as part of a framework deal with the U.S.

West Texas Intermediate futures tumbled 5.7% to $88.53 per barrel by 8:33 a.m. ET. International benchmark Brent crude oil slid about 4.7% to $94.91.

Tehran has committed to restore commercial traffic through Hormuz to pre-war levels within one month of an agreement with the U.S., according to a Reuters report citing Iranian state television.

However, Iran will manage ship traffic through Hormuz in cooperation with Oman, state television said. U.S. military forces would withdraw from the vicinity of Iran and lift the naval blocakde, the reports said.

This is a developing story. Please check back for updates.