Oil Prices Fall After Trump and Pezeshkian Sign US-Iran Deal

The signing of a preliminary agreement between the United States and Iran has led to a decline in global oil prices. The agreement, signed by US President Donald Trump and Iranian President Masoud Pezeshkian, aims to end hostilities between the two nations. It also includes plans to reopen the Strait of Hormuz and begin broader negotiations.

Details of the deal show it is based on a 14-point memorandum of understanding. Trump signed the Persian-language version of this document. The provisions cover commitments related to maritime navigation, phased sanctions relief, and a proposed investment package of up to 300 billion dollars for Iran.

Market data indicates that Brent crude dropped by 89 cents, settling at 78.66 dollars per barrel. At the same time, WTI crude decreased by 98 cents to 75.81 dollars per barrel. These changes occurred as the market reacted to the news of the agreement.

The memorandum is slated for formal endorsement at a ceremony that will take place in Switzerland. This step is part of the process to formalize the preliminary deal reached by the two countries.