Oil Prices Fall to Three-Month Low After U.S.-Iran Preliminary Agreement

Global oil prices have fallen to three-month lows after the United States and Iran announced a preliminary agreement designed to end their conflict. The announcements came from US President Donald Trump and Iranian Deputy Foreign Minister Kazem Gharibabadi.

Brent crude oil prices dropped more than four dollars, reaching eighty-three dollars and thirty cents per barrel. At the same time, West Texas Intermediate crude fell more than five percent to eighty dollars and sixty cents per barrel. These declines reflect reduced concerns over potential energy supply issues in the region.

The preliminary agreement includes several key provisions. It calls for a ceasefire between the parties. The deal also involves reopening the Strait of Hormuz without any transit fees. Additionally, the United States would lift its naval blockade, with a gradual reopening process expected to take place within thirty days.

Pakistani Prime Minister Shehbaz Sharif provided further details on the process. He indicated that Pakistan played a mediating role in the talks. According to Sharif, the sides plan to sign a memorandum of understanding in Switzerland on Friday.

The agreement sets up a sixty-day period for further negotiations. These talks will address sanctions, security matters, and nuclear issues. Reports from Reuters highlighted this timeline for ongoing discussions.

Observers have described the development as a significant diplomatic breakthrough. The agreement is seen as helping to ease tensions that could have led to extended disruptions in global energy supplies.