US and Iran ceasefire reopens Strait of Hormuz, oil falls
Business
Oil prices just took a big dip after the US and Iran agreed to stop fighting and reopen the Strait of Hormuz, a key route for global shipping.
With hopes for more Iranian oil hitting the market, Brent crude dropped to $78.53 per barrel and US West Texas Intermediate slid to $75.31.
Ceasefire gives Iran 60-day toll-free passage
The ceasefire gives Iran 60 days to allow toll-free passage through the Strait, with shipping expected back at full speed in 30 days.
Experts like Goldman Sachs expect Gulf exports to bounce back by late July, while BNP Paribas thinks $75 is now a solid price floor.
Meanwhile, a report published by PetroChina's research unit predicts China's oil use will fall nearly 5% by 2026 as it shifts toward cleaner energy.