Major investment banks lowered their oil price forecasts after progress in U.S.-Iran negotiations increased expectations of a reopening of the Strait of Hormuz and a recovery in global oil supplies.

US-Iran peace deal sparks immediate drop for Brent crude but analysts warn complex negotiations lie ahead, potentially halting further significant drops

Brent crude futures falls $4.08 to $83.25 a barrel and US West Texas Intermediate falls $4.35 to $80.53.

Oil prices edged higher as investors assessed the implications of a potential U.S.-Iran peace deal and the reopening of the Strait of Hormuz. While an interim agreement was…