Oil prices fell by another 4% on Tuesday, hitting their lowest level in three months. The drop comes as markets simultaneously evaluate the outlook for resuming oil supplies through the Strait of Hormuz, weak physical demand, and the lack of clear details surrounding the initial agreement to end the war with Iran.
According to Reuters, Brent crude futures fell by $3.20, or 3.85%, to $79.97 a barrel by 12:53 GMT, approximately 3:30 p.m. Tehran time. The benchmark had earlier dropped to as low as $79.61, its lowest level since February 22, slipping below the $80 mark for the first time since that date.
U.S. West Texas Intermediate (WTI) crude also dropped by $3.52, or 4.36%, to $77.23 a barrel. Its daily low hit $76.88, marking its lowest level since March 11.
Before the outbreak of the war on February 28, prices for both Brent and WTI crude had been hovering within the $65 to $70 range.
Oil had already plunged nearly 5% on Monday after Donald Trump announced a tentative agreement to end the war with Iran, even though the specific details of the deal have not yet been made public.
