Oil Prices Crash Below $79 as US-Iran Peace Deal Reopens Strait of Hormuz

Brent crude futures plunged below $79 per barrel on Tuesday, hitting the lowest level since March, after the United States and Iran reached a digital peace agreement that includes the reopening of the Strait of Hormuz and the immediate resumption of Iranian oil exports. The deal marks a dramatic reversal after months of escalating tensions that had disrupted global oil supplies.

The market had been pricing in tanker attacks, shut-in production, damaged LNG facilities, and what was described as the largest supply disruption in modern oil market history. Now, traders are suddenly betting the crisis is ending. Brent is down more than 33% over the past month, while WTI has also suffered steep losses. The reopening of the Strait of Hormuz, a chokepoint for about 20% of global oil transit, is expected to flood the market with Iranian crude, adding to supply concerns that have now turned into a glut. Live fuel prices and charts on NowPrice show how the market is reacting to this historic shift.

Looking ahead, traders will focus on the pace of Iranian oil exports returning to market and whether OPEC+ will adjust its production quotas in response. The sharp drop in prices could also test the fiscal breakeven levels for major producers, potentially triggering further policy responses. Key levels to watch include Brent's $75 support and the psychological $70 mark.