A man fills his car with petrol in the early morning at the petrol station in Selangor, Malaysia, Monday. Oil falls over 4 percent after U.S. and Iran reach peace deal to end war. EPA-Yonhap
HOUSTON — Oil prices slumped 5 percent to a three-month low on Monday amid a broad selloff after the U.S. and Iran said they agreed terms to end their war and reopen the Strait of Hormuz. Brent crude futures fell $4.38, or 5.02 percent, to $82.95 a barrel by 10:54 a.m. EDT (1455 GMT) and U.S. West Texas Intermediate was at $80.28, down $4.60, or 5.42 percent. Both contracts fell to their lowest levels since March 10 on Monday after tumbling more than 3 percent on Friday.
WTI futures fell as much as $5 during the session. The U.S. and Iran will sign a memorandum of understanding in Switzerland on Friday, said the prime minister of Pakistan, whose country has served as a mediator. Trump said on Sunday that the Strait of Hormuz would be open "toll free" and that a U.S. naval blockade of Iranian ports would also end, though it remains in effect pending completion of the ceasefire agreement.
Iran's semi-official Mehr news agency said the draft deal called for reopening the Strait of Hormuz within 30 days under Iranian arrangements. "With a wall of oil supply very possibly on the way, the sell-off looks justified," said Dennis Kissler, senior vice president of trading at Bok Financial.
