Oil Crashes as US-Iran Deal Revives Global Risk Appetite

The US-Iran peace deal has triggered a chain reaction in global markets. Oil prices have plummeted to a three-month low, while Bitcoin and top cryptos have rallied over the past week.

US crude oil dropped 4.8% to $80.75 per barrel, while international Brent crude fell 4.7% to $83.17. The decline was not limited to one day, with oil prices already tumbling more than 6% in anticipation of an agreement.

The Strait of Hormuz is a key factor behind the oil price drop. Roughly 20% of the world's oil supplies pass through the strait, which was closed due to the war between the US and Iran. With the deal, traders are pricing in the return of Gulf energy flows.

However, prices may not fall much further from here. Crude is still up significantly on the year, and analysts caution that getting supplies back to pre-war levels will take time.