Oil Prices Fall as Hormuz Strait Reopens Following US-Iran Peace Deal

Oil prices are set for a significant weekly decline as shipping through the Strait of Hormuz begins to normalize following an interim peace agreement between the United States and Iran. The agreement marks a turning point in the three-month conflict that had severely disrupted global crude supplies, creating unprecedented market strain. With the critical waterway reopening to traffic, traders are reassessing oil market fundamentals and adjusting positions based on shifting inventory dynamics and supply outlooks. The US, now positioned as the world's top crude exporter, faces continued pressure to meet global demand as market conditions stabilize. Oil traders are actively hedging against multiple scenarios, with focus on US inventory levels and the pace at which supply chains normalize following the extended supply shock. The reopening of Hormuz traffic represents the most significant easing of crude market pressures since the conflict began, triggering a broad repricing of oil futures across global markets.