Oil Drops Nearly 5% as US-Iran Deal Nears Reopening of Strait of Hormuz
Updated
Updated · Bloomberg · Jun 15
Oil Drops Nearly 5% as US-Iran Deal Nears Reopening of Strait of Hormuz
3 articles · Updated · Bloomberg · Jun 15
Summary
WTI held near $81 a barrel after tumbling almost 5% on Monday, its biggest drop in more than two weeks, while Brent settled near $83.
The selloff was driven by optimism that a US-Iran agreement will reopen the Strait of Hormuz, easing fears over disruption in one of the world's key oil shipping lanes.
Trump said at the Group of Seven summit in France that the waterway would be clear and that "a lot of lanes" were already open.
The agreement is due to be signed in Switzerland on Friday, leaving oil traders focused on whether the diplomatic breakthrough translates into sustained shipping access.