Crude oil extends losses as US-Iran peace deal raises supply hopes

Crude oil prices extended their retreat on Tuesday, with global benchmarks hovering near $80 per barrel after tumbling 5% in the previous session. The decline came as investors welcomed reports of a US-Iran peace agreement that could lead to the reopening of the Strait of Hormuz, a critical global oil transit route. The anticipated deal has eased concerns over supply disruptions that had supported prices during the nearly four-month conflict, raising expectations of improved crude flows from the Persian Gulf. Market participants are now awaiting further details of the agreement, which is expected to be signed later this week. Meanwhile, attention has shifted to the Federal Reserve's upcoming policy meeting, where interest rates are widely expected to remain unchanged. On the domestic front, MCX June crude oil futures traded more than 0.5% lower at Rs 7,575 per barrel.

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