economy
Crude oil prices drop to three-month low after Trump announces Iran deal
Crude oil prices fell to a three-month low Monday after President Donald Trump announced that the United States and Iran had reached a deal, which resumed tanker traffic through the Strait of Hormuz.
TL;DR
- Crude oil prices hit a three-month low on Monday.
- Benchmark crude fell nearly 5% to around $83 per barrel.
- U.S. West Texas Intermediate crude dropped below $81 per barrel.
- The decline is due to President Trump announcing a deal with Iran that will reopen the Strait of Hormuz.
- The Strait of Hormuz is a critical shipping lane, accounting for one-fifth of the world's oil supply.
- Markets had been pricing in the risk of disruptions to oil shipments.
- Oil prices had surged above $120 per barrel during the height of the crisis.
- The agreement was announced on social media by Trump.
- Commercial shipping would gradually resume through the strait before its reopening on Friday.