NEW YORK: Oil prices fell about five per cent to a three-month low on Tuesday as traders hoped the US and Iran would agree to end the war and allow oil to flow through the Strait of Hormuz.

Prices, which were already down about 4pc Tuesday morning, extended those losses following a Wall Street Journal report that the US would allow Iran to immediately begin selling oil and fuel under the memorandum of understanding.

Brent crude futures fell $4.25, or 5.1pc, to $78.92 a barrel at 12:02pm ET (1602 GMT). US West Texas Intermediate crude fell $4.80, or 5.9pc, to $75.95.

The drop put Brent on track for its lowest close since March 2 and kept it in technically oversold territory for a third day in a row for the first time since October 2025. WTI was on track for its lowest close since March 4.

Published in Dawn, June 17th, 2026