Oil prices fell further Thursday after U.S. President Donald Trump and his Iranian counterpart signed off on a memorandum to end their war and reopen the Strait of Hormuz.
The news boosted optimism for a lasting peace between the two nations after more than three months of war that has rattled energy markets and fuelled a fresh spike in inflation.
However, the upbeat mood on trading floors was tempered by expectations that the U.S. Federal Reserve (Fed) will hike interest rates before year's end, after its new boss held his first policy meeting and acknowledged "persistently high prices are a burden for the American people."
Trump put his signature to the memorandum of understanding (MoU) in Versailles after a G-7 summit, telling reporters: "Just signed it."
Iranian Foreign Ministry spokesperson Esmaeil Baqaei, quoted by state news agency IRNA, said the document "was finalized with the signatures of the presidents."
