Oil Prices Fall Below $80 After US-Iran Deal
Global oil prices fell sharply on Tuesday, hitting a three-month low after optimism grew over the reopening of the Strait of Hormuz following a peace deal between the United States and Iran.
Benchmark Brent crude dropped 3.8% to $79.99 per barrel, slipping below the $80 mark for the first time since early March.
The main U.S. contract, West Texas Intermediate (WTI), also fell 3.9% to $77.61 per barrel, reflecting broad market relief over reduced geopolitical risks.
The price decline comes after months of volatility driven by tensions in the Middle East, which had previously pushed Brent above $100 per barrel in March 2026.
Analysts said the peace deal eased fears of prolonged supply disruptions, particularly through the Strait of Hormuz, a critical global oil transit route.
The easing of tensions has also raised expectations of improved global trade flows and reduced inflationary pressures tied to energy costs.
Despite the drop, traders remain cautious, noting that oil markets could still face volatility if the peace deal falters or if other geopolitical risks emerge.
The latest fall underscores how sensitive global energy markets remain to geopolitical developments, with oil prices swinging sharply in response to diplomatic breakthroughs or renewed conflict.