The price of oil plunged nearly 5% on Wednesday after a new report suggested commercial shipping through the Strait of Hormuz could resume within weeks under a potential agreement to end the US-Israel-Iran war.

Details: International benchmark Brent crude had already been trending lower throughout the morning, extending a broader decline seen over recent sessions as markets increasingly wagered that Washington and Tehran were nearing a diplomatic breakthrough.

But just after 8:00 a.m. EDT, oil prices suddenly collapsed. Brent crude fell more than $2 per barrel in less than 20 minutes, briefly trading below $95 per barrel — the lowest level since mid-April. For the week, oil prices were down roughly 10%.

The sharp move followed reports from Iranian state television that Tehran had obtained a draft of an unofficial memorandum of understanding framework with the United States. Under the reported framework, Iran would restore commercial shipping through the Strait of Hormuz to prewar levels within 30 days; in exchange, the United States would withdraw military forces from the region and end its naval blockade.