Doha: Oil prices fell to their lowest level in three months on Tuesday as markets weighed prospects for a resumption of supplies through the Strait of Hormuz alongside weak physical demand and the lack of details regarding a preliminary deal to end the war in Iran. By 09:06 GMT, Brent crude futures had dropped by $1.44, or 1.7%, to $81.73 a barrel, their lowest level since March 10. US West Texas Intermediate crude futures also were down $1.55, or 1.9%, to $79.20 a barrel, also reaching their lowest level since March 10. Prices had already fallen by about 5% on Monday, settling at their lowest level since March 4.

According to Qatar News Agency, the recent downturn in oil prices is attributed to the anticipation of resumed oil flows through the Strait of Hormuz, a crucial passage for global oil shipments. Market analysts are closely monitoring the situation as potential impacts on global supply chains could further influence prices. The ongoing geopolitical tensions in the region continue to play a significant role in market dynamics, adding to the volatility experienced by crude futures.

Industry stakeholders are also taking note of the weak physical demand, which has contributed to the decline in oil prices. As the market grapples with these challenges, the focus remains on developments surrounding the preliminary deal to end the conflict in Iran. However, the absence of specific details regarding the agreement has left traders cautious, further affecting market sentiment.