Crude oil prices fell on Thursday after the US and Iran ‘electronically’ signed and exchanged a Memorandum of Understanding (MoU) to end the war.
Brent crude futures were down 89 cents, or 1.12 per cent, at $78.66 a barrel as of 00:05 GMT, while US West Texas Intermediate fell 98 cents, or 1.28 per cent, to $75.81 a barrel.
Crude oil prices fell in early trading after the free passage of Iranian ships began through the Strait of Hormuz, according to the latest data from oil marketing companies.
Meanwhile, Iranian sources confirmed that 11 of its large tankers have sailed through the former US naval blockade since Tehran and Washington finalised the text of the understanding on Sunday. Some sources said eight Iranian vessels sailed from Iranian waters while three entered territorial waters on Thursday as trade resumes in the critical waterway.
The latest memorandum calls for the US to end its naval blockade of Iran, while Tehran is to maintain safe and free passage in the Strait of Hormuz for at least 60 days.
Crude oil prices in April and May had climbed to record highs of $120 per barrel due to continued back-and-forth action between the United States and Iran. However, prices have since come down, though they continue to fluctuate rapidly depending on developments between the two sides.
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