Brent crude fell below $80 per barrel on Tuesday, amid optimism over an initial US-Iran agreement aimed at ending the war and restoring traffic through the Strait of Hormuz.
International benchmark Brent crude traded at $79.63 per barrel at 3.41 p.m. local time (1241 GMT), down around 4.3% from the previous close of $83.17.
US benchmark West Texas Intermediate (WTI) fell 4.7% to $76.96 per barrel, compared with $80.75 in the previous session.
Both benchmarks touched their lowest levels since early March.
After 15 weeks of war, Pakistani Prime Minister Shehbaz Sharif announced early Monday that the US and Iran have reached a peace agreement following intensive negotiations.
In a post on the US social media platform X, Sharif said that the official signing ceremony is scheduled to take place on June 19 in Switzerland.
US Presidnet Donald Trump also said that an agreement with Iran had been finalized and that he was authorizing the reopening of the Strait of Hormuz and the removal of a US naval blockade.
In a post on his Truth Social platform, Trump signaled the resumption of maritime traffic and energy shipments through the strategic waterway, writing: "Ships of the World, start your engines. Let the oil flow!"
Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed that a memorandum of understanding (MoU) between Iran and the US has been finalized, according to remarks carried by Iran's semi-official Mehr News Agency. Gharibabad said the draft MoU includes Iran's key positions and the full text will be made public after the official signing.
Meanwhile, uncertainty over the details of the agreement and concerns that the resumption of supply flows through the Strait of Hormuz may take longer than expected limited further price decreases.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr
