Oil prices fell by more than $2 a barrel on Wednesday after the United States and Iran signed a temporary agreement that would end their war and reopen the Strait of Hormuz, boosting the outlook for oil supplies.
During trading, Brent crude futures fell $2.14, or 2.69%, to $77.41 a barrel, while US West Texas Intermediate crude dropped $2.36, or 3.07%, to $74.43 a barrel.
Brent crude fell to its lowest level since March 2, the first trading day after the war in Iran began, while West Texas Intermediate hit its lowest since March 4. Both benchmarks resumed their decline, erasing gains made the day before after President Donald Trump said he might resume the bombing campaign if Iran's leaders "don't behave."
The International Energy Agency noted that if the US-Iran agreement is successfully implemented and the Strait of Hormuz reopened, the supply crisis experienced this year could turn into a significant surplus by 2027.