Oil Falls to Three-Month Lows as Hormuz Reopening Faces Delays

Oil prices dropped to their lowest levels since early March after the United States and Iran announced a provisional ceasefire framework that would reopen the Strait of Hormuz. Brent crude fell 2.7 percent to $80.91 a barrel and West Texas Intermediate slid 2.8 percent below $80, according to futures data reported Tuesday. The moves followed a sharper sell-off the previous session and reflected uncertainty over the full terms of the agreement.

President Trump stated that the Strait would reopen completely on Friday without Iranian tolls and that a formal signing would occur in Geneva. The G7 summit in Évian-les-Bains, France, was expected to review further details of the memorandum later in the week. Hapag-Lloyd welcomed the prospect of resumed traffic for its remaining vessels, while Mitsui OSK Lines chief executive Jotaro Tamura told the Financial Times that many operators would wait weeks for concrete operational assurances before resuming transits.

The conflict had previously driven Brent above $120 a barrel from a pre-war level near $67. Even with lower crude prices, refiners typically buy feedstock a month or more in advance, so motorists are unlikely to see immediate relief at the pump. Economists at Columbia Business School and the Energy Policy Research Foundation noted that supply-chain effects on fertilizer, food, and jet fuel will take additional weeks or months to unwind. Shipping and retail sectors similarly forecast elevated costs persisting through at least the end of the year.