Oil Prices Crash as Traders Bet the War Is Over

AI Summary

Oil prices have sharply declined as traders anticipate an end to recent supply disruptions and geopolitical tensions. The United States and Iran digitally signed a peace agreement that includes reopening the Strait of Hormuz and returning Iranian oil to global markets, leading Brent crude futures to fall below $79 per barrel.

The oil market just did something remarkable. After spending months pricing in tanker attacks, shut-in production, damaged LNG facilities, and the largest supply disruption in modern oil market history, traders are suddenly betting the crisis is ending. Brent crude futures fell below $79 per barrel on Tuesday, its lowest level since March, after the United States and Iran digitally signed a peace agreement that includes the reopening of the Strait of Hormuz and the immediate return of Iranian oil sales to global markets. The selloff has been relentless.…