Oil prices inch lower as traders eye U.S.-Iran peace agreement

Live updates

1. 1h ago

   Oil prices dip as U.S.-Iran deal sparks Strait of Hormuz hopes

   Oil prices have fallen to three-month lows after the U.S. and Iran announced a preliminary peace agreement expected to reopen the Strait of Hormuz. Markets reacted cautiously, with traders unwinding some risk premiums despite lingering uncertainty over the deal’s final terms. Hundreds of ships remain stranded in the Persian Gulf, and prices stay elevated compared to pre-conflict levels. Analysts warn full relief may take months even if the deal holds.

   What's confirmed:

   • Oil prices sank to their lowest levels in over three months after the U.S. and Iran agreed to end the blockade of Iranian ports and reopen the Strait of Hormuz.
   • Traders reduced bets on high prices, though oil remains over 10% higher since Iran effectively closed the Strait in late February.
   • The proposed deal would allow Iran to immediately resume oil sales, easing supply fears that had driven prices up.
   • Stocks rose in Asia Monday while oil prices tumbled following the announcement of the peace deal.
   • Hundreds of ships are still stranded in the Persian Gulf unable to transport oil and gas to global markets.
   • The U.S. has framed the agreement as deferring war goals while providing Iran financial relief.

   Still unconfirmed:

   • The Strait of Hormuz will never truly reopen under the deal’s terms.
   • Oil prices will remain high for months regardless of the agreement’s outcome.
   • The Trump administration has unveiled sweeping terms allowing Iran immediate oil sales without full war resolution.
   confidence 92%