Oil Prices Fall as Strait of Hormuz Reopens Following US-Iran Peace Deal

Oil prices have fallen sharply following a peace agreement between the United States and Iran, which led to the reopening of the Strait of Hormuz. Brent crude futures dropped 0.54% to $79.42 per barrel, while US West Texas Intermediate crude fell 0.22% to $76.43 per barrel. The deal is expected to release over 85 million barrels of stranded oil and includes the removal of US sanctions on Iranian oil exports, potentially increasing global supply. While major oil-producing countries like Kuwait and Iraq are preparing to boost exports, market uncertainty persists due to ongoing military operations in Lebanon and a withdrawn US Vice President from negotiations, making the geopolitical situation fragile.