Oil falls over 4% as US and Iran reach peace deal to reopen Strait of Hormuz

business

The United States and Iran have reached an interim peace deal to end a nearly four-month conflict in the Middle East. This agreement marks the first major step toward ending the war that has roiled global energy markets.

The deal is expected to potentially reopen the Strait of Hormuz and restore oil and gas flows. However, analysts warn that a return to normality could still be months away.

Oil markets reacted with enthusiasm to the announcement, causing prices to sink. Brent crude fell 4.02 per cent to US$83.82.

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