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Oil Prices Hit Lowest Since March on Preliminary US-Iran Deal to Reopen Hormuz
🇵🇰 Pakistan /Economy & Trade

Oil Prices Hit Lowest Since March on Preliminary US-Iran Deal to Reopen Hormuz

From Dawn · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • Oil prices fell to their lowest point since March, with Brent crude at $83.25 and WTI at $80.53 per barrel.
  • The decline follows a preliminary agreement between the US and Iran to end their conflict and reopen the Strait of Hormuz.
  • A memorandum of understanding is set to be signed in Switzerland on Friday, with the US promising to keep the Strait of Hormuz open.

Global oil prices have dropped to their lowest levels since March, reflecting a significant shift in market sentiment. Brent crude futures fell by 4.7 percent to $83.25 a barrel, while US West Texas Intermediate was down 5.1 percent at $80.53. Both benchmarks reached their lowest points since March 10, following a more than 3 percent drop on Friday. This market movement is directly linked to a preliminary agreement reached between the United States and Iran. The deal aims to end their ongoing conflict and, crucially, to reopen traffic through the vital Strait of Hormuz. Prime Minister Shehbaz Sharif announced that a memorandum of understanding will be signed in Switzerland this Friday. President Donald Trump stated that the Strait of Hormuz would be open "toll free," signaling a potential easing of geopolitical tensions that have impacted energy markets.

The Strait of Hormuz would be open “toll free”

— Donald TrumpPresident Donald Trump's statement regarding the reopening of the Strait of Hormuz as part of the preliminary agreement with Iran.
DistantNews Editorial

Originally published by Dawn in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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