Oil Drops to Two-Month Low on US-Iran Peace Deal to End War
Oil prices fell Monday morning in Asia following news that a memorandum of understanding to end the war between the US and Iran has been finalized, clearing the way for the reopening of the Strait of Hormuz.As of Monday morning in Asia, West Texas Intermediate (WTI) crude oil dropped 4.75% to trade at $80.85 per barrel. Brent crude oil fell 3.98% to $83.85 per barrel, hitting a two-month low."The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade," U.S. President Donald Trump wrote on Truth Social.A signing ceremony for the MOU is expected to take place in Switzerland on Friday, Pakistani Prime Minister Shebaz Sharif wrote in an X post.Pakistan is acting as the neutral mediator in the conflict between the U.S. and Iran."Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED. Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon," Sharif wrote.