Oil drops to fresh three-month low as markets weigh U.S.-Iran peace deal

Oil prices fell to fresh three-month lows as markets priced in the possibility of renewed supply through the Strait of Hormuz, alongside weaker physical demand. The move was also driven by scant details on a preliminary deal to end the Iran war, keeping geopolitical risk elevated but less supportive for crude. The combination of supply normalization expectations and soft demand is a bearish near-term signal for energy markets.

Analysis

Oil prices fell to fresh three-month lows as markets priced in the possibility of renewed supply through the Strait of Hormuz, alongside weaker physical demand. The move was also driven by scant details on a preliminary deal to end the Iran war, keeping geopolitical risk elevated but less supportive for crude. The combination of supply normalization expectations and soft demand is a bearish near-term signal for energy markets.