[SNAP ANALYSIS] Crude tumbles following source reports by Al Araby Al Jadeed of a US-Iran draft accord

Al Araby Al Jadeed reported: Washington has approved the draft memorandum of understanding that the Qatari delegation presented to Iran yesterday, Al-Araby Al-Jadeed reports citing sources close to the mediation team The mediation team briefed Saudi Arabia and the UAE on the memorandum of understanding that was reached and received their approval. Washington and Tehran have made concessions regarding the Iranian nuclear program and frozen funds. The discussion now revolves around the first step and how to announce reaching an interim agreement, followed by the return of both parties to negotiations. Discussions are currently underway regarding arrangements for announcing the agreement, and there is a move towards both parties announcing it simultaneously. US-Iran announcement will reportedly be made step by step and simultaneously Tehran will announce a concession regarding its nuclear program in exchange for Washington announcing the release of part of Tehran's frozen funds. The announcement of the new memorandum of understanding may be done in the same way as the announcement of the memorandum of understanding last June. The aim of the announcement was to portray Washington and Tehran as the victors in this war, the report said. Recent reports: Despite the optimistic media reports official public stances remain highly cautious and conflicted. Tehran continues to maintain that any permanent resolution or reopening of the critical Strait of Hormuz is strictly contingent on the US lifting its naval blockade on Iranian ports. Earlier today, senior Iranian officials say Iran and US are far from reaching a deal to end the war, sources report; US' excessive demands will not be accepted by Iran, the source added. It was reported yesterday that Iran had reportedly conveyed seven conditions to Qatar for reaching an agreement with Washington, including lifting the US blockade of Iranian ports, according to Kyodo citing a senior Iranian official. Tehran is said to be willing to adopt a flexible position on nuclear issues if an agreement to reopen the Strait of Hormuz is reached, although significant differences remain as the US seeks simultaneous nuclear concessions. Market Reaction: Crude tumbled USD 4/bbl and extended following the reports with the slide in energy supporting broader risk sentiment in tandem.