Oil prices fall after US-Iran deal on Hormuz

Oil prices fell sharply in Asian trading on Monday after the United States and Iran announced a deal expected to reopen the Strait of Hormuz.

Brent crude, the global benchmark, dropped 4.8% to $83.18 a barrel. US crude fell 5.6% to $80.13.

Pakistan’s prime minister, Shehbaz Sharif, said the agreement would be signed in Switzerland on 19 June. Iran’s deputy foreign minister, Kazem Gharibabadi, said the deal with Washington had been finalised.

President Donald Trump posted: “Let the oil flow!”

The Strait of Hormuz is one of the world’s most important energy routes, carrying about a fifth of global oil and liquefied natural gas shipments.

Energy analysts warned prices could remain volatile until the full terms of the deal are clear.