U.S. and Iran Reach Ceasefire Agreement, Global Oil Prices Plummet

The United States and Iran have announced an agreement to end hostilities in the Middle East and reopen the strategically vital Strait of Hormuz, triggering a significant drop in global oil prices.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for July delivery fell by $4.13, or 4.87%, closing at $80.75 per barrel.

Brent crude oil for August delivery on the London market dropped $4.16, or 4.76%, settling at $83.17 per barrel. The Strait of Hormuz is a critical maritime chokepoint through which a substantial portion of the world's oil supply passes.

The reopening of the strait signals reduced supply risks, easing market tensions and contributing to the decline in energy prices. This agreement marks a pivotal step toward de-escalating regional conflicts in the Middle East.

The news was reported by Central News Agency, citing international wire services from New York, and highlights a major shift in geopolitical stability affecting global energy markets.