Oil prices fell after reports of a 60-day agreement to reopen the Strait of Hormuz, easing supply concerns amid geopolitical tensions.
Brent crude futures declined to $79 per barrel as markets reacted to reports of a temporary deal between the US, Iran, and Oman to reopen the Strait of Hormuz. The agreement aims to restore shipping routes for 60 days without fees, mirroring a previous arrangement that collapsed after renewed attacks.
The proposed deal includes inbound traffic through Iranian waters and outbound via Oman, while efforts continue to clear mines from the strait. Analysts note the deal’s resemblance to past failed agreements, highlighting ongoing risks despite short-term relief.
The S&P 500 reached a record high as equities rallied on reduced geopolitical risks, though uncertainties remain over the deal’s durability and long-term solutions.