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Oil Plunges as U.S., Iran Reach Deal to Reopen Hormuz But Outlook Remains Uncertain

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Oil prices dropped after the U.S. and Iran reached an interim deal, marking the first major step toward ending a nearly four-month conflict that has roiled global energy markets. However, uncertainty over the pace of recovery is expected to keep crude above prewar levels.

In midmorning European trade on Monday, Brent crude fell 4.9% to $83.07 a barrel, while West Texas Intermediate futures were down 5.3% to $80.38 a barrel after sliding to $79.70 earlier. Natural-gas prices also tumbled, with the front-month Dutch TTF contract—the European benchmark—down 5.3% to 44.30 euros a megawatt hour.

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