Oil prices fall 5% to 3-month low on hopes Strait of Hormuz will open

Brent crude fell 5.1% to $78.96 a barrel and WTI dropped 5.8% to $76.05, hitting three-month lows as an interim U.S.-Iran deal emerged to reopen the Strait of Hormuz and allow Iran to resume oil exports. Major banks including Goldman Sachs, Morgan Stanley and Citi lowered their oil price forecasts following the news. Additional pressure came from concerns over Chinas economy, a 9.1% YoY decline in Chinese crude throughput in May, and the Bank of Japan raising rates to a 31-year high.