Oil prices slide after Pakistan announces deal between US and Iran

Article excerpt

Oil prices tumbled after Pakistan announced a deal between the US and Iran that would reopen the strategically vital Strait of Hormuz, a waterway through which roughly one-third of global crude shipments flow. President Donald Trump confirmed the agreement, which marks a significant shift in US-Iran tensions that had escalated earlier in his term. The reopening of the strait, a chokepoint that handles critical energy supplies, typically signals reduced geopolitical risk and increased oil supply expectations, prompting traders to sell off energy commodities. The deal represents a rare moment of diplomatic agreement between the longtime adversaries, though details about enforcement and duration remained unclear at announcement.