Oil held near a three-month low on expectations that a US-Iran deal to reopen the Strait of Hormuz will unleash a wave of supply.Producers, shippers and traders are now assessing whether the agreement will prove to be durable. (AFP)West Texas Intermediate traded below $77 a barrel, after sinking 16% over four sessions to post the longest losing run this year. Brent ended near $79. The interim pact, which is due to be signed on Friday, offers Tehran broad financial incentives, including the right to sell its oil immediately.Crude prices have retreated sharply in recent weeks as moves to end the war between Washington and Tehran are seen easing tightness in global energy markets. Producers, shippers and traders are now assessing whether the agreement will prove to be durable, and how long it will take for vessel transits of the Hormuz chokepoint to be revived in earnest.Also Read | Ease on Rupee, oil prices: What US-Iran peace deal means for India“Most traders still believe US naval operations will likely be escorting for the first few weeks, and mine-sweeping ships will also be present, which will slow the flow of traffic,” said Dennis Kissler, senior vice president for trading at BOK Financial Securities Inc. “Still, the futures market is always looking in the distance, and for now the odds are increasing that oil will be moving.”While technical details are still being finalized and some language may be changed, a 14-point draft memorandum offers the clearest picture yet of the deal, which will pave the way for 60 days of talks aimed at formally ending the war and imposing strict new limits on Iran’s nuclear program.The points include a requirement for Tehran to ensure the movement of merchant ships and for the US to lift its own blockade of Hormuz. The narrow waterway connects the Persian Gulf to the Indian Ocean, and in peacetime it used to carry about a fifth of global oil supplies.Also Read | Ship-to-ship transfer, two locations, armed drones: How US smuggled 90 million barrels of oil using Iran's techniqueAlso included is a commitment by Washington to issue waivers for exports of Iranian crude, petrochemical products and their derivatives, and all related services, including banking, insurance, and transportation.Although a revival in supply is widely expected, crude stockpiles have still been drawing at a rapid pace. A US industry group estimated that US inventories sank by 8.3 million barrels last week, including a substantial drop at the key hub at Cushing, Oklahoma. Official data are due later on Wednesday.