Brent and WTI crude futures fall nearly 3% after U.S.-Iran deal eases supply concerns and reopens the Strait of Hormuz.
Oil prices plunged to their lowest levels since the start of the Iran war after a U.S.-Iran ceasefire agreement improved global supply prospects. Brent crude futures dropped $1.53, or 1.9%, to $78.02 a barrel, while U.S. West Texas Intermediate fell $2.22, or 2.9%, to $74.57 a barrel.
The deal, which includes a 60-day negotiation period, allows toll-free passage through the Strait of Hormuz within 30 days. Analysts expect a gradual recovery in oil flows, though demand dynamics may limit further price declines. The preliminary accord also requires a $300 billion financing plan for Iran’s recovery.
Markets reacted swiftly to the news, extending losses as traders priced in a faster-than-expected return of Iranian oil supplies.