WASHINGTON: Oil prices tumbled on Sunday after President Donald Trump announced that the United States had reached an agreement with Iran and would immediately end its naval blockade in the region.
Brent crude futures fell 3.9% to approximately $84 a barrel, while U.S. West Texas Intermediate crude dropped 4.8% to around $81 a barrel. Should oil settle at these levels, it would mark the lowest price for crude since March 4 — just days after the outbreak of hostilities.
The decline builds on a downward trend from Friday, when markets — anticipating a deal framework would be finalized over the weekend — pushed oil below $90 a barrel for the first time since the first week of the war.
Despite the sharp drop, crude remains significantly above pre-conflict levels. Analysts note that prices still have a long way to fall to return to under $70 a barrel, where oil was trading before the United States and Israel launched attacks on Iran in late February.
No official details of the agreement have been released, and it remains unclear what concessions, if any, Iran made in exchange for the lifting of the blockade.
