Oil slips 4% as US, Iran reach peace deal to reopen Strait of Hormuz

Brent crude fell 4.10% to $83.75/barrel and WTI dropped 4.72% to $80.87 after the US and Iran reached a peace deal to reopen the Strait of Hormuz, mediated by Pakistan. The agreement, to be signed in Switzerland, includes a memorandum of understanding to end the US naval blockade of Iranian ports and reopen the strategic waterway within 30 days. Analysts noted the geopolitical risk premium is being unwound aggressively, though uncertainties around the 60-day ceasefire and nuclear negotiations could limit further downside.