The oil price has dropped back below the critical $100 mark as markets surged and the dollar weakened on rumours that an Iran war deal might be reached.

Reports from Washington are that the immense pressure applied to Iran over recent weeks, matched with an American incentive to claim a victory and drop domestic consumer prices, may be coalescing into a deal.

That deal may see Iran agree to nuclear curbs in exchange for which Washington may release its broader stranglehold on the Iranian economy.

The Common Sense has reported that a meeting between Trump and Xi in Beijing this week may be an important exit point horizon to watch given the particular pressure Beijing has been under as a consequence of the Hormuz blockades.

Chinese oil buying has funded a dominant share of the Iranian budget affording Beijing much leverage over domestic Iranian affairs.

Earlier today The Common Sense reported that the Iranian foreign minister had flown to Beijing for talks.

Read The Common Sense's “war scenarios” here as well as special coverage on the Iran War on The Common Sense website.