Muscat: Oil prices fell to their lowest level in three months today as markets weighed the prospect of resuming supplies through the Strait of Hormuz, weak physical demand, and the absence of concrete details from a preliminary agreement to end the war in Iran. By 09:06 GMT, Brent crude futures had dropped $1.44, or 1.7 percent, to $81.73 a barrel - their lowest level since 10 March 2026. US West Texas Intermediate crude futures also declined $1.55, or 1.9 percent, to $79.20 a barrel, also reaching their lowest level since 10 March. Prices had already tumbled about 5 percent on Monday, settling at their lowest level since 4 March.

According to Oman News Agency, the market sentiment has been influenced by the possibility of increased oil flows through the Strait of Hormuz, a critical passage for global oil shipments. The anticipation of resumed supply is contributing to the downward pressure on prices. Additionally, the lack of strong physical demand is further exacerbating the decline in oil prices. The preliminary agreement aiming to end hostilities in Iran has yet to provide specific details, leaving markets uncertain about the timeline and impact on oil supply dynamics. This uncertainty, combined with the existing factors, is driving prices to their current lows.