Oil prices fall as Washington and Tehran agree to end military operations and reopen the Strait of Hormuz by Friday.
West Texas Intermediate crude slid to $79.40 in early Asian trading, hitting a two-month low. The decline follows reports of a US-Iran peace agreement, which includes an immediate end to military operations and plans to reopen the Strait of Hormuz by Friday.
The Strait had been effectively closed since late February after US and Israeli airstrikes on Iran. Prior to the deal, WTI traded near $82 last week, with markets pricing in prolonged supply disruptions. Uncertainty persists, however, as US officials warned of resumed strikes if Iran fails to finalize a nuclear accord.
Market focus now shifts to the American Petroleum Institute’s weekly crude inventory report due Tuesday, which could influence near-term price movements.