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Economy
Global oil prices dropped below $80 per barrel on Tuesday for the first time since March amid optimism over a U.S.-Iran deal involving the reopening of the Strait of Hormuz.
On Tuesday, global oil prices declined to under $80 per barrel, marking the first such drop since March, driven by optimism about a potential agreement between the United States and Iran that includes reopening the Strait of Hormuz.
The decline accelerated by more than 5% following a report indicating that Washington might ease sanctions on Iranian oil as part of a deal aimed at ending the conflict in the Middle East. This could enable Tehran to resume exporting crude oil and petroleum products.
Oil prices experienced a significant drop on June 12 after reports emerged of American and Iranian officials reaching a draft agreement, raising hopes for the reopening of the Strait of Hormuz, a critical passage for global energy supplies.
Brent crude, the global benchmark, fell to its lowest level in three months, trading below $79 per barrel. Meanwhile, West Texas Intermediate crude dropped 5.9%, dipping below $76 per barrel.
Earlier, U.S. President Donald Trump announced that the Strait of Hormuz would be "fully open" once a peace agreement between Washington and Tehran is signed on Friday in Switzerland.
