Hormuz Strait Deal Triggers Brent Oil Drop Below $70

The United States and Iran reached a temporary cease‑fire agreement, allowing commercial vessels to resume normal transit through the Hormuz Strait. Analysts said the easing of shipping constraints lifted the risk premium on crude, prompting Brent oil to fall back into the $60‑70 per barrel range. Citi projected Brent could settle between $60 and $65 by year‑end, while market data showed Brent trading around $71.76 and WTI near $68.5.

With the strait reopening, regional producers boosted output. Kuwait raised daily crude output from about 580,000 barrels to 1.65 million barrels, and Saudi super‑tankers moved roughly 10 million barrels through Hormuz. Oman rejected any mandatory transit fee, echoing U.S. opposition to charging for passage. Iran reiterated its responsibility for mine clearance in the waterway and warned of retaliation against any violations, while also highlighting strategic ties with China.