Oil prices fell below $78 a barrel, reaching their lowest point since the conflict began, following a US-Iran deal that reopened the Strait of Hormuz. Benchmark Brent crude futures dropped by an additional 2%, while the main US oil contract, West Texas Intermediate, was trading at $75.85 a barrel. This decline was attributed to the expected increase in global oil supply as Iranian exports resume and commercial shipping through the vital chokepoint normalizes.
The memorandum of understanding (MoU) signed by US President Donald Trump and Iranian President Masoud Pezeshkian facilitated the immediate opening of the Strait of Hormuz and lifted a US blockade on Iranian ports. Under the agreement, the US waived sanctions on Iranian oil exports, allowing Iran to sell its crude on the world market after nearly two months of halted exports. This waiver covers services such as banking, transportation, and insurance, restoring a revenue stream worth billions for Iran.
Following the deal, shipping activity in the Strait of Hormuz saw an immediate surge. Three Saudi-flagged supertankers carrying approximately 6 million barrels of crude transited the strait. Maritime intelligence data indicated that at least seven previously immobilized ships resumed transit, including five with Chinese affiliations and several European-flagged vessels. Two National Iranian Tanker Company (NITC) supertankers, Diona and Hero 2, carrying a combined 3.8 million barrels of Iranian crude oil, also exited the US Navy blockade perimeter, marking Iran's first crude oil exports in two months. A third NITC tanker, Sonia I, carrying 1 million barrels, also passed the blockade line.
