The price of Brent oil has fallen below $80 for the first time in three months.
We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:
This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.
Oil prices fell to their lowest level in three months on Tuesday on hopes that the Strait of Hormuz would reopen after a peace deal between the US and Iran.
Brent crude, the international benchmark, fell 4 percent to $79.87 a barrel. Brent fell below $80 for the first time in three months.
Similarly, US benchmark West Texas Intermediate crude fell 4.5 percent to $77.16 a barrel.
US President Donald Trump said the Strait of Hormuz would be fully opened after the US and Iran signed a peace deal in Switzerland on Friday.
Iran had effectively blocked tanker traffic in the vital waterway in response to US and Israeli attacks that began in late February.
This put pressure on global oil and gas supplies, sending crude prices to record highs. According to David Morrison, senior market analyst at brokerage firm Trade Nation, the reopening of the Strait of Hormuz is one of the most immediate and positive outcomes of any peace deal.
He said, "Despite Iran's threat to impose tariffs on ships using the Strait of Hormuz, there are signs that supply conditions are gradually easing in the oil market."
Analysts say the possibility of the reopening of the Strait of Hormuz, considered a vital energy supply route for the world, has eased concerns about supply disruptions in the market and has led to a decline in oil prices.
