Oil hits 3-month low as U.S., Iran reach peace deal to reopen Strait of Hormuz

Oil prices fell to a three-month low after President Trump and Iran’s deputy foreign minister said they had reached an initial deal to end the war and resume traffic through the Strait of Hormuz. The development reduces an immediate geopolitical supply-risk premium for crude and could pressure energy markets broadly. Because the Strait of Hormuz is a critical transit chokepoint, the news has market-wide implications for oil, shipping, and related commodities.

Analysis

Oil prices fell to a three-month low after President Trump and Iran’s deputy foreign minister said they had reached an initial deal to end the war and resume traffic through the Strait of Hormuz. The development reduces an immediate geopolitical supply-risk premium for crude and could pressure energy markets broadly. Because the Strait of Hormuz is a critical transit chokepoint, the news has market-wide implications for oil, shipping, and related commodities.