Oil prices plummeted on Friday following the signing of the US-Iran interim peace deal, as oil tankers began to move through the Strait of Hormuz. Brent crude futures fell 0.68% to $78.31 a barrel, while U.S. West Texas Intermediate crude slipped 0.60% to $76.14 a barrel.
Analysts expect the deal to release over 85 million barrels of oil stranded in the Middle East Gulf into global markets, with the lifting of US sanctions on Iranian oil adding more supply to the market.
However, traders remain cautious, waiting for consistent tanker traffic through the Strait of Hormuz before committing to further price drops.
Middle East producers, including Kuwait and Iraq, are gearing up to resume exports, but the ongoing war against Hezbollah in Lebanon raises questions about the deal's sustainability.
