Oil prices fell early Tuesday, with Brent crude futures down 0.53% at $82.74 and U.S. West Texas Intermediate futures down 0.41% at $80.44. This decline follows a sharp sell-off on Monday and reflects ongoing uncertainty regarding the U.S.-Iran agreement aimed at resolving the Middle East conflict.
The agreement, which includes a 60-day ceasefire and the reopening of the Strait of Hormuz to shipping, is expected to be a key topic at the G7 summit in France. President Donald Trump confirmed that the peace framework has been signed and indicated that the Strait of Hormuz would be fully reopened on Friday without Iranian tolls. However, tanker operators remain cautious.
Jotaro Tamura, CEO of Mitsui OSK Lines, noted that many shipping companies might delay resuming transit through the Strait until they are assured of safety and stability, emphasizing that a simple agreement is not enough to ensure normal operations. This situation is critical as the Strait of Hormuz is a vital route for global oil supply, accounting for about 20% prior to the conflict.
The market will be closely watching developments from the G7 meeting and any further details released regarding the peace agreement