Oil prices fell to a three-month low on Tuesday following a sharp decline on Monday as investors continued to wait for more details on a deal between the United States and Iran to end the Middle East conflict.
brent crude oil Futures, the international price benchmark, were down 1.25% at $82.13 as of 4 a.m. ET.
us west texas intermediate Futures for July delivery fell below $80, falling 1.41% to $79.67.
Crude oil futures rose slightly overnight, but then reversed and fell in early trading to their lowest since March 4.
This instability reflects the continued uncertainty surrounding the full terms of the peace framework agreed between the United States and Iran.
Brent crude oil.
The push towards a resolution to the war will be at the center of discussions at the G7 summit in Evian-les-Bains, France, which begins today, with further details of the memorandum expected to be announced later this week.
Tanker leaders remain cautious about sailing the Hormuz
The United States and Iran earlier reached a tentative agreement on Sunday that extended the ceasefire between the two countries for 60 days and reopened the Strait of Hormuz to all shipping.
Arriving at the G7 meeting, President Donald Trump said a peace framework with Iran had been signed, adding that the Strait of Hormuz would be “fully reopened” on Friday, waiving Iranian tolls. President Trump said a formal signing ceremony would be held in Geneva on Friday.
Germany’s global container shipping giant Hapag-Lloyd welcomed the peace agreement and the prospect of a cessation of all military operations in the region as “good news for us, our crews and our customers.”
“We hope that the remaining four vessels will be able to transit the Strait of Hormuz this weekend,” Hapag-Lloyd said in a statement.
West Texas Intermediate.
But the head of the world’s largest tanker operator suggested a more complex path to normalizing traffic in the strait, which accounted for about 20% of global oil supplies before the outbreak of war in late February.
Mitsui O.S.K. Lines Chief Executive Officer Jotaro Tamura told the Financial Times on Tuesday that many operators may wait weeks before allowing tankers to resume crossing the strait.
“What needs to be concluded is not just an agreement between the countries involved, but something substantial that reflects the actual situation in the Strait of Hormuz so that shipping companies can transit comfortably,” Tamura said.
