Oil prices hit lowest level since March after US-Iran ceasefire deal
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Summary
Oil prices fell to their lowest level since early March after the U.S. and Iran announced an interim agreement to reopen the Strait of Hormuz, with Brent down 2% to about $77.96 and WTI at $74.96. The 14-point agreement provides 60 days of toll-free passage, a partial sanctions lift, and frozen assets release while deferring Iran's nuclear program.
Market Impact
Goldman Sachs projects Gulf oil exports could return to pre-war levels by end of July and full crude production by October, with flows set to increase by 13 million barrels per day. Saudi Aramco is considering expanding global storage capacity amid the supply-landscape shift. This analysis is informational and avoids any directional trading claims.
Why It Matters
It marks the direct market-price consequences of a geopolitical de-escalation that recalibrated global energy supply expectations.
Key Points
- Brent crude fell 2% to $77.96 per barrel and WTI dropped 2.38% to $74.96, Brent's lowest since early March 2026.
- The 14-point memorandum provides a 60-day period for negotiations, toll-free passage through the Strait, and calls for a $300bn financial recovery plan for Iran.
- Full traffic through the Strait of Hormuz is to be restored within 30 days under the agreement.
- Goldman Sachs projects Gulf oil exports could return to pre-war levels by end of July, with crude production recovery by October.
Key Entities
Evidence
The 14-point memorandum sets out a 60-day period for negotiations, during which Iran has agreed to allow toll-free passage through the Strait of Hormuz.Supports: Supports the deal-terms summary.
Goldman Sachs projects that Gulf oil exports could return to pre-war levels by the end of next month, with full recovery of crude production by October. The bank said exports are expected to increase by 13 million bar...Supports: Supports the Goldman production-recovery projection.
Aramco chairman Yasir Al-Rumayyan said: 'Aramco has storage facilities around the world, especially in Asia, in Korea and Japan, and we are thinking seriously of having larger storage facilities all over the world.'Supports: Supports the Aramco storage-expansion point.