Oil Prices Extend Decline As Supply Concerns Ease

(RTTNews) - Oil extended declines on Tuesday, after having fallen to a three-month low in the previous session on easing energy supply concerns.

Brent crude futures for August delivery fell 2.1 percent to $81.41 a barrel, while WTI crude futures for July delivery were down 2.3 percent at $78.89.

U.S. President J D Vance indicated that U.S. President Trump may release a preliminary deal to end the war with Iran before Friday.

The specific terms of the deal remain unclear, but President Doanld Trump said the Strait of Hormuz, a critical shipping route for global oil supplies, could reopen as soon as Friday.

According to a senior U.S. official quoted by the New York Times, both Trump and Vance have electronically signed the framework agreement with Iran's lead negotiator Mohammed Bagher Ghalibaf.

The Strait of Hormuz will be fully open by Friday, with heavy tankers likely to get priority movement to ensure that the oil and gas supplies flow very quickly, it was said.

The June 14 agreement to settle a three-and-a-half month-long conflict will be signed in person on Friday in Geneva.

That said, some of the biggest questions remain unanswered. Iranian President Masoud Pezeshkian said that the signed MOU is a draft and a final agreement has yet to be reached.

"The Islamic Republic of Iran has prepared itself for all options, and the government's focus - with or without an agreement—is sincere service to the people," he said.

Media reports suggest that the U.S.-Iran ceasefire is likely to be extended for 60 days, with the countries set to use that window to negotiate over Iran's nuclear enrichment and the disposal of its highly enriched uranium.

Meanwhile, Israeli Prime Benjamin Netanyahu has vowed to continue Israel's occupations of Lebanese and Syrian territory despite the ceasefire agreement announced between the United States and Iran.