Brent and WTI both fell around two dollars within the hour on the report, adding to a slide that has already taken crude down roughly five percent from last week's highs. The reaction shows how sensitive the market remains to any signal of a resolution given how much of the current price still reflects a geopolitical risk premium tied to Hormuz. However, the move looks stretched relative to the strength of the sourcing behind it. A single wire citing unnamed foreign military and security contacts is a thin basis for a two dollar repricing, and desks should be alert to a sharp reversal if the report fails to gain traction on other newswires or from Tehran's own state media in the hours ahead.---Oil is trading a rumour, not a confirmed deal, and the sourcing so far does not match the size of the price move.Summary:Brent and WTI both fell approximately two dollars per barrel within the past hourMove follows a report from Russian state agency RIA Novosti citing Pakistani military and Iranian security sources of an agreed US Iran ceasefireReport states the ceasefire includes free navigation through the Strait of Hormuz, with a formal announcement expected in coming daysNo confirmation yet from Reuters, Bloomberg, AP, or any US, Iranian or Gulf state media outletSourcing is considered unusual given Russia is not a party to the negotiations and would not typically be first to confirm a US Iran developmentThe CIA director is currently in Moscow, though this is circumstantial and does not corroborate the ceasefire claimMove adds to an existing three session decline in crude, which had already fallen roughly five percent from last week's highs on softer than expected US sanctions and separate reports of Pakistani mediation effortsOil prices fell sharply within the past hour after a report from Russian state news agency RIA Novosti claimed that a ceasefire had been agreed between the United States and Iran, including provisions for free navigation through the Strait of Hormuz. Brent and West Texas Intermediate both dropped around two dollars a barrel on the headline, extending a decline that has already pulled crude down roughly five percent from highs reached last week.According to RIA, the report is based on accounts from Pakistani military and Iranian security sources, who told the agency that a ceasefire had been agreed and would be formally announced in coming days. The claim has not been corroborated by Reuters, Bloomberg, Associated Press or any other major international wire, nor has it been confirmed by officials in Washington, Tehran or the Gulf states. Iranian state outlets such as IRNA and Press TV, which have historically moved quickly to confirm developments favourable to Tehran, had not picked up the report as of writing.Traders are treating the sourcing with some caution. Russia is not a direct party to the US Iran negotiations, and it would be an unusual pattern for a Russian state outlet to be first to confirm a breakthrough in talks between Washington and Tehran. Pakistan has played a genuine mediating role in the conflict at several points, lending some plausibility to sources described as Pakistani military contacts, but the chain of attribution remains several steps removed from any official confirmation.Separately, market participants have noted that the CIA director is currently in Moscow. While the timing has drawn attention, there is no indication the visit is connected to the substance of the RIA report, and it should not be read as corroborating evidence.The price reaction comes on top of an already softening market. Crude had fallen for three consecutive sessions this week after a US sanctions package targeting Iran's trading partners was seen as less severe than markets had anticipated, and after reports emerged of separate Pakistani mediation efforts involving a proposal tied to the existing US Iran memorandum of understanding. Against that backdrop, an unconfirmed ceasefire report landing on an already bearish market has amplified the price response.Desks are watching for confirmation or denial from Western wires, US officials or Iranian state media in the hours ahead. Given the narrow sourcing behind the claim, a failure to gain corroboration would raise the risk of a swift reversal of today's move. This article was written by Eamonn Sheridan at investinglive.com.