Brent Rises to $83.71 After US‑Iran Deal
Oil prices edged higher in Asian trade on Tuesday, reversing a sharp decline the previous day. At 20:08 ET (00:08 GMT), Brent crude futures for August delivery increased 0.7% to $83.71 a barrel, while U.S. West Texas Intermediate (WTI) futures for July delivery rose 0.9% to $81.44 a barrel.
The rebound followed a roughly 5% drop on Monday after U.S. President Donald Trump announced a memorandum of understanding with Iran intended to end months of conflict and reopen the Strait of Hormuz for shipping. The memorandum was expected to restore normal oil flow through the strategic waterway.
Market participants are now awaiting the timing of the agreement’s implementation and the speed at which stranded vessels can resume service. A formal signing ceremony is scheduled in Geneva on Friday, where U.S. and Iranian officials will sign the agreement.
Analysts note that uncertainty remains despite the positive price reaction. Concerns include maritime security, potential insurance cost increases, and the pace at which oil exports can return to pre‑conflict levels. Several institutions caution that normalizing inventories and shipping routes could take weeks or even months.
Adding to the cautious tone, OPEC lowered its forecast for global oil‑demand growth in 2026 for the second consecutive month. The producer group now expects demand to increase by about 970,000 barrels per day next year, down from the earlier estimate of 1.17 million barrels per day.
Inventories have been drawn down significantly during the Strait’s closure, and any setbacks in negotiations or delays in reopening could reignite supply concerns and volatility across energy markets.