Oil drops to multi-month low on US-Iran peace progress

Crude oil prices extended their decline on Tuesday, with WTI futures falling below $73 per barrel and touching their lowest level since early March. Brent crude also slipped to around $76.7 per barrel as easing geopolitical tensions and expectations of higher supply weighed on the market. The decline followed Washington?s decision to grant Iran a 60-day license to sell oil internationally after initial peace talks in Switzerland, raising hopes of a faster increase in global oil supply. The reopening of communication channels to ensure safe passage through the Strait of Hormuz further eased concerns over supply disruptions. Broader market sentiment remained cautious, with Asian equities posting sharp losses. Japan?s Nikkei fell 3.5%, South Korea?s Kospi plunged nearly 10%, and Hong Kong?s Hang Seng dropped around 2%, as investors weighed the prospect of a more aggressive Federal Reserve stance to combat inflation. Meanwhile, MCX July crude oil futures traded lower near ₹6,948 per barrel.

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