Oil drops to fresh three-month low as markets weigh US-Iran peace deal

Article excerpt

Oil prices hit their lowest point in three months as markets digested the possibility of a U.S.-Iran peace deal, a development that could ease Middle Eastern tensions and potentially increase crude supply. Brent crude fell below $80 per barrel while West Texas Intermediate dropped to around $76, reflecting investor expectations that a diplomatic breakthrough would reduce geopolitical risk premiums that typically prop up energy prices. The potential accord comes as U.S. sanctions on Iranian oil exports have constrained global supply for years. Traders are now calculating what normalized Iranian production might mean for an already-oversupplied market heading into the winter season.