Oil prices took a significant hit on Monday following an announcement that U.S. President Donald Trump and Iran’s deputy foreign minister have agreed to a deal that would end the fighting and restore shipping through the Strait of Hormuz.
Brent crude futures dropped $3.51, or 4.02%, settling at $83.82 per barrel as of 2203 GMT. Meanwhile, U.S. West Texas Intermediate crude fell to $80.95 a barrel, a decline of $3.93, or 4.63%.
The agreement between Washington and Tehran signals a potential easing of tensions that had kept global energy markets on edge, with the reopening of the strategically vital Strait of Hormuz expected to allow oil shipments to flow more freely through the region.
