Oil prices fell below $80 per barrel on Tuesday on optimism about the planned reopening of the Strait of Hormuz, reducing inflation pressures on global economies, despite traders’ concerns about Iranian “service fees” on ships traversing the strait.
Brent North Sea crude, the worldwide benchmark, fell 4.0 percent to $79.87 a barrel, dropping below $80 for the first time since early March, before recovering to $80.52. The key US oil contract, West Texas Intermediate, fell 4.5 percent to $77.16 per barrel before rebounding to near $78.
US President Donald Trump stated that the Strait of Hormuz will be “completely open” once Washington and Iran sign a peace agreement in Switzerland on Friday. The Iranian media said that three oil tankers and two cargo ships had already passed through. Wall Street was cautious, with the Dow up only 0.6 percent at 51,958.08 points half an hour into trading, the broader S&P 500 up just 0.1 percent, and the tech-heavy Nasdaq adding 0.3 percent. Two hours before the closing of trading, London and Paris had risen 0.7 percent, Frankfurt was only up 0.2 percent, and Asia had ended mixed.
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