The decline follows the signing of a Memorandum of Understanding (MoU) between Washington and Tehran, which has raised expectations of a gradual recovery in global oil supplies and a reopening of the strategically important Strait of Hormuz.
Brent crude oil prices fell below $77 a barrel on Tuesday, extending losses and reaching their lowest level in almost three months, as markets reacted positively to signs of progress in peace negotiations between the United States and Iran.
The decline follows the signing of a Memorandum of Understanding (MoU) between Washington and Tehran, which has raised expectations of a gradual recovery in global oil supplies and a reopening of the strategically important Strait of Hormuz.
Under the agreement, the US granted Iran a 60-day licence to sell oil on international markets, a move that has fuelled expectations that supply disruptions caused by months of conflict could begin to ease.
Shipping activity through the Strait of Hormuz has also increased, while major Gulf producers, including Kuwait and the United Arab Emirates, have secured alternative export routes. Iran has reportedly shipped more than 30 million barrels of oil over the past week.
