Oil prices fell after the United States and Iran signed an agreement that news reports said ends hostilities, includes a waiver of U.S.-backed sanctions and calls for the Strait of Hormuz to reopen.
Reuters reported that oil extended the previous session’s declines on Wednesday as investors assessed the U.S.-Iran deal. AP reported that the agreement immediately allows Iran to sell its oil more freely, while Axios said the memorandum of understanding declares the war over and calls for Iran to open the Strait of Hormuz.
The market response reflected expectations of increased Iranian crude supply and reduced disruption risk for shipments through the waterway, a key route for global oil flows.