Brent crude oil prices dropped below $80 per barrel for the first time since early March, following a sharp market reaction to geopolitical developments involving the reopening of the Strait of Hormuz, a key global energy shipping route.
According to AFP, Brent North Sea crude for August delivery fell by 3.72% to $80.08 per barrel around 12:25 GMT on Tuesday, extending earlier losses triggered by news of a US–Iran agreement aimed at ending conflict in the Middle East and restoring shipping through the strategic waterway.
US West Texas Intermediate (WTI) also declined significantly, falling 4.5% to $77.16 per barrel as energy markets responded to expectations of improved supply flows and reduced geopolitical risk in the region.
US President Donald Trump announced that the Strait of Hormuz would be fully reopened on Friday following a signing ceremony of the agreement between Washington and Tehran. The development eased concerns over supply disruptions that had previously pushed crude prices higher.
Iran had restricted oil tanker movement through the strait in response to earlier US and Israeli strikes, which disrupted regional oil and gas exports and contributed to volatility in global energy markets, local Arabic daily reports.
Analysts say the reopening of the shipping lane is expected to stabilize supply chains and could place further downward pressure on oil prices if tensions continue to ease.
