Oil falls as tankers return to Hormuz after US-Iran peace deal
Why it matters: Analysts expect more than 85 million stranded barrels to re-enter global markets as sanctions on Iranian oil ease.
Oil prices fell Friday as tanker traffic resumed through the Strait of Hormuz after an interim US-Iran peace deal reopened the key shipping lane. Brent crude dropped 0.54% to $79.42 a barrel by 0328 GMT, while US West Texas Intermediate slipped 0.22% to $76.43. Several tankers, including three Saudi-flagged vessels carrying 6 million barrels of crude, passed through the strait hours after the two countries signed the accord. Analysts said the deal could free more than 85 million barrels stranded in the Gulf and add Iranian exports as US sanctions are lifted. Kuwait Petroleum Corp lifted wartime force majeure notices, and Iraq said output could gradually return to normal. But Israel's war with Hezbollah in Lebanon and Vice President JD Vance's canceled Switzerland trip kept doubts alive about how quickly shipping will normalize.