Global crude oil prices dropped to a three-month low on Tuesday after markets reacted positively to a reported peace agreement between the United States and Iran, raising expectations of improved supply flow through key shipping routes.
The development triggered optimism that tensions in the Middle East could ease, particularly around the Strait of Hormuz, a vital corridor for global oil shipments.
Brent North Sea crude, the international oil benchmark, fell by 3.8 per cent to $79.99 per barrel, slipping below the $80 mark for the first time since early March.
The West Texas Intermediate (WTI), the United States crude benchmark, also declined, dropping 3.9 per cent to $77.61 per barrel as trading responded to the geopolitical shift.
Analysts linked the downturn to expectations that a thaw in U.S.-Iran relations could reduce supply risks that had previously supported higher oil prices in global markets.
Market watchers said the potential easing of tensions could lead to the reopening and safer navigation of the Strait of Hormuz, one of the world’s most strategically important oil transit routes.
The drop in prices marked a reversal from earlier gains recorded in recent months when geopolitical uncertainty had pushed crude above the $80 threshold.
Traders are now closely monitoring developments in the U.S.-Iran deal, as well as broader OPEC+ production decisions, which could further influence global oil supply and pricing trends in the coming weeks.
