Oil prices plunged more than 5% to reach three-month lows on Monday after the United States and Iran announced an initial agreement to end their war, lift the US naval blockade on Iranian ports, and reopen the Strait of Hormuz that affects roughly one-fifth of global oil shipments.
A signing ceremony is set for Friday in Switzerland following weeks of mixed messaging from both Washington and Tehran on the trajectory of the conflict.
With no official terms yet released, exact details of the deal are not clear. Trump said the tentative deal included opening the vital Strait of Hormuz, without giving further details.
Brent crude futures for August delivery plummeted 5.3% to $82.73 a barrel, while WTI crude futures for July delivery were down 5.5% at $80.22.
"Let the oil flow!" Trump exclaimed on Sunday and declared that the "great deal" which is "now complete" would bring "peace and security to the whole region."
Analysts say that the simmering conflict between Israel and Lebanon could also still lead to a breakdown of talks.
