Oil prices dropped below $80 a barrel Tuesday on optimism over the promised reopening of the Strait of Hormuz, easing inflation pressures on global economies even though traders are eyeing the risk of Iranian “service fees” on ships transiting the strait.
Oil hit a three-month low as Brent North Sea crude, the international benchmark, dropped 4.0 percent to $79.87 a barrel, dipping below $80 for the first time since early March, before edging back up.
The main US oil contract, West Texas Intermediate, slid 4.7 percent to under $77 a barrel.
US President Donald Trump said the Strait of Hormuz would “completely open” once Washington and Iran sign their peace agreement on Friday in Switzerland.
Iranian media reported that three oil tankers and two cargo ships had already passed through.
Wall Street was cautious, with the Dow adding 0.8 percent, but the broader S&P 500 dipped 0.2 percent and the tech-heavy
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