The announcement that the United States and Iran have reached an agreement to reopen the Strait of Hormuz triggered a strong reaction across global markets.
Oil prices fell sharply on expectations that energy flows through one of the world’s most important shipping routes will return to normal, while equity futures on Wall Street rose and stock markets across Asia-Pacific posted gains.
Investors viewed the agreement as a significant step toward de-escalating tensions in the Persian Gulf and reducing risks to global energy supplies.
Brent crude, the international benchmark, fell more than 5% to US$82.91 per barrel, while US West Texas Intermediate crude dropped 5.5% to US$80.21. Both benchmarks touched their lowest levels since early March.
Despite the decline, oil prices remain about US$10 per barrel above where they traded before hostilities began in late February, suggesting a full return to pre-conflict levels could take months.
