Crude oil fell 3% to $78.40 per barrel on Tuesday, after a 4.9% drop on Monday, extending losses for a fourth straight session and marking the lowest level since early March. Prices are now on track for their longest losing streak of the year, as expectations of a US–Iran agreement to reopen the Strait of Hormuz have raised hopes of a recovery in supply flows. An interim deal is expected to be signed in Switzerland on Friday, although neither side has yet released details of the agreement.
Despite growing optimism, uncertainty persists over how the deal will be implemented, including issues related to shipping security, operational conditions, and whether the strait will fully reopen. The effective closure of the Strait of Hormuz has already curbed regional exports and contributed to a drawdown in global inventories. US emergency crude reserves have fallen to their lowest level since 1983.
