Oil prices dropped sharply on Wednesday, with Brent crude falling more than five percent after Iranian state television reported it had obtained a draft framework for an initial agreement between Iran and the United States that would reopen the Strait of Hormuz and see American forces withdraw from the vicinity of Iran.

Brent crude futures fell 3.66 dollars, or 3.7 percent, to settle at 95.30 dollars a barrel, while West Texas Intermediate lost 5.19 dollars, or 5.59 percent, to 88.70 dollars. Both benchmarks touched their lowest intraday levels in over a month, with Brent dipping to 94.16 dollars and WTI reaching 87.77 dollars during the session. The losses more than reversed Brent’s gains from the previous session, when prices had risen following fresh United States strikes on Iran.

The reported draft memorandum of understanding circulated by Iranian state media outlined that American military forces would end their naval blockade and withdraw from Iranian waters, with ship traffic through the Strait of Hormuz subsequently managed jointly by Iran and Oman. The prospect of resumed tanker traffic through the strait, combined with reported increases in vessel movements in the waterway, pushed prices downward.

The White House rejected the Iranian media report outright. A statement from its Rapid Response account said the draft MOU was a complete fabrication and that nobody should believe what Iranian state media was publishing.

White House spokeswoman Olivia Wales said the president would only make a good deal for the American people, which must ensure that Iran could never acquire a nuclear weapon. President Donald Trump separately said the Strait of Hormuz would be open to all under any deal and that there were no discussions about easing sanctions on Tehran.

Iran’s effective closure of the Strait of Hormuz had taken more than 14 million barrels per day of Middle East oil supply offline, according to the International Energy Agency, representing one of the most significant disruptions to global energy flows in recent history. Iran itself suggested a 14-point framework agreement was being finalized with Washington but acknowledged that major differences remained between the two sides.