Oil drops to three-month low after US-Iran peace move

WASHINGTON: Oil prices fell sharply on Monday, with both global benchmark Brent and US crude sliding to their lowest levels in more than three months after President Donald Trump said the United States and Iran had signed a memorandum of understanding aimed at ending the Iran war and reopening the Strait of Hormuz.

By 1730 GMT, Brent crude futures were down $4.11, or 4.71%, at $83.22 a barrel, while US West Texas Intermediate crude had fallen $4.34, or 5.11%, to $80.54. Both contracts touched their weakest levels since March 10 during the session. WTI at one point was down as much as $5.

The latest decline followed losses of more than 3% on Friday, extending a broader market selloff. A US official said the memorandum was signed by Trump, Vice President JD Vance and Iranian parliament speaker Mohammad Bagher Qalibaf.

An official signing ceremony for the agreement is scheduled for Friday in Geneva. Iran's semi-official Mehr news agency reported that the draft agreement proposed reopening the Strait of Hormuz within 30 days under arrangements to be made by Iran.