Oil prices have dropped following an interim agreement between the United States and Iran. The deal aims to end the war, reopen the Strait of Hormuz and lift sanctions on Iranian oil exports.
The agreement takes the form of a 14-point memorandum. It starts a 60-day period of further negotiations between the two countries.
The pact could resolve a major disruption to global energy supplies. Analysts expect this may lead to a significant oil supply glut in 2027.
Brent crude futures have fallen in response to the news. Markets are adjusting to the prospect of increased Iranian oil flows once sanctions are eased.
