: Oil futures drop on report of progress toward a U.S., Iran deal

Oil futures traded sharply lower Thursday, with analysts attributing the drop to a report of progress toward a deal between the U.S. and Iran. The two countries are nearing a temporary deal that would offer some sanctions relief in return for Iran reducing uranium enrichment activities, the Middle East Eye, a London-based news site, reported citing two sources with direct knowledge of the talks. The terms of the deal would include Iran ceasing its 60% and higher uranium enrichment activities and in return, it would be allowed to export up to a million barrels of oil a day, the report said. Other news reports have cited progress in the negotiations in recent days. “It is an emotional reaction at this point” for oil, said Phil Flynn, senior market analyst at The Price Futures Group. July West Texas Intermediate crude CLN23 fell $2.09, or 2.9%, at $70.44 a barrel on the New York Mercantile Exchange.

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