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14.06.202623:26:50UTC+00Oil Drops on US-Iran Peace Deal

Crude oil fell more than 4% to around $81 per barrel on Monday, hitting a two-month low after the United States and Iran reached a peace agreement intended to end the conflict in the Middle East and reopen the Strait of Hormuz by the end of the week. President Donald Trump announced that oil shipments from the Persian Gulf could soon resume, including the lifting of a US blockade on Iranian ports.

The agreement reportedly includes provisions for dismantling Iran’s nuclear program, as well as economic incentives if Tehran fulfills its commitments. Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed that a deal had been reached and said the full text would be released after a signing ceremony in Switzerland.

Oil markets have been heavily disrupted since the conflict erupted in late February, with the near-closure of the Strait of Hormuz affecting roughly one-fifth of global crude shipments.

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