Oil stays on downward path as markets await details of US-Iran deal

Oil prices continued to decline on Tuesday amid optimism over an initial US-Iran agreement to end the war and resume traffic through the Strait of Hormuz, while uncertainty over the details of the deal limited further losses.

International benchmark Brent crude traded at $82.37 per barrel at 10.23 a.m. local time (0723 GMT), down around 0.96% from the previous close of $83.17.

US benchmark West Texas Intermediate (WTI) fell 0.83% to $80.08 per barrel, compared with $80.75 in the previous session.

After a memorandum of understanding (MoU) was signed on Sunday to end the US-Israeli war with Iran and reopen the Strait of Hormuz, carrying about one-fifth of global oil supplies, prices fell by more than 5%, hitting their lowest levels since early March.

Despite the optimism, the full details of the MoU have not yet been made public, and a permanent ceasefire has not been finalized. Concerns that the resumption of flows through Hormuz may take longer than expected are also tempering further price declines.

US President Donald Trump said on Monday that the text of the MoU would be released “sometime after Friday.” Speaking during a meeting with French President Emmanuel Macron on the sidelines of the G7 summit in Evian, Trump described the MoU as a “very powerful document.”

US Vice President JD Vance told CNN that the document is “about a page and a half” long and provides only a broad framework for subsequent technical negotiations.

The diplomatic push followed an announcement by Pakistani Prime Minister Shehbaz Sharif, whose country led mediation efforts between Washington and Tehran, that the US and Iran had reached a peace agreement and that a signing ceremony would be held in Switzerland on Friday.

• International benchmark Brent crude
• Memorandum of understanding (MOU)
• Pakistani Prime Minister Shehbaz Sharif
• US benchmark West Texas Intermediate (WTI)
• US Vice President JD Vance