White House denies Iranian media's leaked draft, S&P turns lower, Rubio says Iran negotiations given "every chance of success," US oil drops over 5%

The statements from the Trump administration have poured cold water on expectations for a quick breakthrough in US-Iran negotiations. The White House denied reports from Iranian media regarding the contents of an exposed draft on the resumption of pre-war navigation in the Strait of Hormuz. Secretary of State Rubio stated that the US prefers to resolve the issue through negotiations and will give negotiations “every chance for success,” but if a “good agreement” cannot be reached, it will respond “in another way.”

According to reports, on Wednesday the 27th Eastern Time, White House spokesperson Olivia Wales, in response to reports by Iranian state media, stated: “As President Trump has said, negotiations are progressing smoothly, and he has set clear red lines. President Trump will only secure a good agreement for the American people, and that agreement must ensure that Iran can never possess nuclear weapons.”

The official White House account also posted on social media platform X, saying, “This report by Iranian state media is untrue. The so-called ‘disclosed’ memorandum has been completely fabricated, and no one should believe the content of Iranian state media.”

After the White House denied the relevant Iranian media reports, the two major US stock indexes S&P 500 and Nasdaq, which had turned higher in early trading, returned to a downward trend, hitting new daily lows during midday and the end of the morning session, respectively.

According to CCTV News, Iranian media revealed an “initial informal document” regarding a memorandum of understanding framework between Iran and the United States, covering issues such as the Strait of Hormuz, regional military deployments, and future agreement arrangements.

According to this document, the United States would commit to lifting the “maritime blockade” on Iran and withdrawing some of the military forces deployed around Iran. In exchange, Iran would gradually restore commercial shipping traffic through the Strait of Hormuz to pre-escalation levels within a month, excluding military vessels. The management and route arrangements for vessel passage would be coordinated jointly by Iran and Oman.

Rubio States Diplomatic Solution Is Preferred, Alternatives Exist If Talks Fail

In a cabinet meeting at the White House, Secretary of State Rubio noted that negotiations with Iran have made some progress.

Rubio stated that President Trump prefers to resolve the issue through diplomatic means, but if diplomacy fails, the US has prepared other options—remarks likely hinting at the possible resumption of military actions.

Rubio said the final result of the negotiations will either be a “good agreement,” or Washington will respond to Iran “in another way.”

Rubio said: “Ultimately, our first choice is a diplomatic solution achieved through negotiations, and we will give this path every chance for success.”

After Rubio referred to giving diplomacy “every chance for success,” international crude oil futures extended their losses. US WTI crude oil fell toward $89, with intraday losses widening to more than 5%, approaching new daily lows set below $88 during European trading hours.