Analysis: The peace agreement between the US and Iran is pushing oil prices lower.

After the agreement between the United States and Iran to end the Middle East conflict and reopen the Strait of Hormuz for navigation, crude oil futures fell to their lowest level since early March. Peter Cardillo of Spartan Capital stated in a report that this decline is "mainly related to speculative positions being closed, which is clearly a positive development." He added that it may take over a month for the strait to return to normal operation. "Therefore, once the initial frenzy subsides, we expect spot prices to hover between $85 and $90, especially due to the current tight supply." West Texas Intermediate crude oil fell by 5.3%, to $80.41 per barrel; Brent crude oil fell by 4.8%, to $83.11.