Oil Falls to Three-Month Low on US-Iran Hopes
Oil prices fell about 5% on Tuesday to their lowest level in three months, as hopes grew that the US and Iran could reach an agreement to end the war and restore oil flows through the Strait of Hormuz.
Brent crude fell $4.25, or 5.1%, to $78.92 per barrel at 12:02 p.m. ET, while West Texas Intermediate fell $4.80, or 5.9%, to $75.95. These declines extended the pressure seen since early trading, when both contracts had already fallen about 4%.
The selling pressure deepened after a Wall Street Journal report that the US would allow Iran to immediately begin selling oil and fuel under a memorandum of understanding. The prospect of additional Iranian supply reinforced market expectations that the risk of energy disruptions could ease if the deal goes through.
Brent crude was on track for its lowest close since March 2, while WTI was headed for its lowest close since March 4. Brent also remained in technically oversold territory for the third consecutive day, the first time since October 2025.
Oil prices had previously fallen nearly 5% on Monday after US President Donald Trump announced an interim deal to end the US-Israel war with Iran. On Tuesday, Trump said the text of the deal would be made public soon.
However, doubts about the deal's effectiveness remain high. Experts warn that energy shipments and exports could take weeks to recover, especially since reopening maritime routes depends not only on diplomatic decisions but also on security and logistics.
Analysts at Ritterbusch and Associates believe the market currently has high confidence in the plan's success, although thorny issues remain, such as financial compensation, sanctions, and an adequate nuclear deal. The next focus will be on the contents of the memorandum, the mechanism for opening Hormuz, and how quickly Iranian supplies actually return to the market.
Source: Newsmaker.id
