Oil prices fell to a three-month low after US President Donald Trump said the US and Iran have signed a memorandum of understanding aiming to end the Iran war and reopen the Strait of Hormuz. The memorandum of understanding has been signed by Trump and Vice President JD Vance and Iranian parliament Speaker Mohammad Bagher Qalibaf, one US official said.
Oil prices fell to a three-month low after US President Donald Trump said the US and Iran have signed a memorandum of understanding aiming to end the Iran war and reopen the Strait of Hormuz.
The memorandum of understanding has been signed by Trump and Vice President JD Vance and Iranian parliament Speaker Mohammad Bagher Qalibaf, one US official said. Iran lowered the official selling price for its light crude oil grade for Asian buyers to $7.15 a barrel above the Oman/Dubai average for July, the state-owned National Iranian Oil Company said on Monday, compared with the previous month's premium of $13 a barrel.
Citi on Monday cut its average Brent crude forecasts to $75 and $70 per barrel for the third and fourth quarters of 2026, respectively, citing expectations that the Strait of Hormuz trade flows will resume and normalise. The world has lost millions of barrels of oil and gas supply since the war closed the Strait of Hormuz, a chokepoint for a fifth of the world's oil and liquefied natural gas supplies, for more than three months.
Investors are also watching cautiously how quickly Middle Eastern producers can resume oil production and exports following damage from the war, and whether more ships will enter the region. More than 14 million barrels per day of oil output is shut, or about 14 per cent of world demand, according to the International Energy Agency's most recent report. A full return to pre-war production and refining levels is likely to take weeks, months or even years, industry officials say.
Lower oil inventory levels, a slower process to restart production and the refilling of strategic oil inventories should support oil prices in the longer term, UBS analyst Giovanni Staunovo said. Stockpiles in the world's largest economies are headed toward their lowest levels since at least 2003, squeezed at a record pace due to the lost Gulf output, according to the US Energy Information Administration.
Stocks of crude oil in the US Strategic Petroleum Reserve fell to 340.3 million barrels, the lowest level since 1983, according to data from the Department of Energy on Monday. Inventories in the government's emergency stash fell by 8.9 million barrels, the third-steepest draw on record. Israeli Defence Minister Israel Katz said the military would remain in security zones in Lebanon, Syria and Gaza indefinitely in order to protect the border and Israeli settlements.
The fate of Iran's nuclear programme, another thorny issue, will also be addressed in those later talks, sources previously told Reuters. E4 nations, which include the UK, France, Germany and Italy, said on Sunday the countries were prepared to lift sanctions on Iran in response to steps on its nuclear programme
Please follow us on Google to support us Oil Prices Strait Of Hormuz US And Iran Memorandum Of Understanding Iran War
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US and Iran Near Framework Agreement to End Conflict, but Timing Remains UncertainA draft agreement between the US and Iran would see the US release billions in frozen assets and waive oil sanctions in exchange for Iran opening the Strait of Hormuz. Despite Trump's announcement of a Sunday signing, Tehran casts doubt, and hardliners in Iran protest the deal. Negotiations ongoing.
Read more »
US and Iran Reach Historic Peace Deal to Reopen Strait of Hormuz and End ConflictA landmark agreement between the United States and Iran has been announced, securing a ceasefire, ending the US blockade, and planning the immediate reopening of the strategic Strait of Hormuz, which promises to ease global energy tensions.
Read more »
US and Iran Reach Preliminary Deal to End Conflict and Reopen Strait of HormuzA memorandum of understanding between the US and Iran is set to be signed on Friday in Switzerland, though the exact terms remain unclear after weeks of conflicting reports. The agreement aims to end the war that began in February, reopen the strategic Strait of Hormuz, and pave the way for further negotiations on Iran's nuclear program. The conflict has caused thousands of casualties and a surge in global energy prices.
Read more »
Iran, US agree to halt war and reopen Hormuz, sending oil prices tumblingDUBAI/WASHINGTON — US and Iranian officials said they had reached an agreement to end their war and reopen the Strait of Hormuz, a preliminary pact that sent oil prices falling but leaves the fate of Tehran's nuclear programme to further negotiations.
Read more »