Oil prices steady near $81 ahead of Hormuz pact signing
Oil prices are holding steady after Monday's drop, thanks to news that the US and Iran are close to a deal to reopen the Strait of Hormuz, a crucial waterway for global oil shipments.
On Monday, US crude hovered near $81 a barrel, and Brent was around $83, bouncing back from nearly 5% dips.
The agreement is expected to be signed in Switzerland on Friday.
Hundreds of ships stuck at Hormuz
Before the war, about one-fifth of the world's oil supply passed through the Strait of Hormuz between Iran and Oman, so its closure has caused major trade headaches.
President Trump stressed at the G-7 summit that "We have a lot of lanes right now already," through Hormuz is essential.
Right now, hundreds of ships are stuck waiting to pass through, and Pavel Molchanov said it could take until the end of July for oil flows to get back to prewar levels, even with this deal in sight.
Traders and producers are awaiting more details of the pact.