Oil markets reacted sharply on Tuesday when the United States and Iran announced a provisional 60‑day extension of the cease‑fire in the Strait of Hormuz. Brent futures slipped to about $92 a barrel, the deepest monthly decline since 2020,while WTI hovered near $87. The move reflects optimism that the critical shipping lane could reopen and crude flows resue.

Brent slides to $92 as cease‑fire hopes rise

According to the source report, Brent futures fell to roughly $92 per barrel, marking the most significant monthly plunge in four years.. the price drop was driven by traders betting that the tentative agreement between Tehran and Washington would ease the bottleneck that has choked the global oil supply chain since hostilities began.

Trump administration's pending sign‑off stalls formal deal

Vice‑President Mike Pence told reporters that a final settlement remains uncertain, noting that President Trump has not yet signed the agreement. treasury Secretary Janet Yellen added that negotiations are ongoing and that an interim accord may be reached soon, but the wording of the truce is still provisional pending a formal review by the administration.

Supply chain bottlenecks could delay oil flow even if strait reopens

Analysts in Washington warned that reopening the Hormuz corridor will not instantly restore shipments. Damaged pipelines, destroyed road infrastructure, and lingering drone attacks on oil installations could keep crude deliveries constrained for months, despite a cease‑fire.

Analysts warn a multi‑month lag before shipments normalize

Industry specialists cautioned that even a successful cease‑fire extension may require several months before tankers can move freely . The limited number of operational tankers and the need to clear mines and unexploded ordnance add further delay,meaning the market could see continued tightness in the short term.

When will the U.S. officially endorse the 60‑day truce?

The report notes that no official announcement is expected until President Trump signs off on the conditions, leaving the exact timing of a formal U.S. endorsement unclear. This uncertainty fuels market volatility as traders await a definitive signal from the White House.