Oil down 2% after US, Iran sign ceasefire agreement

Crude Oil barrels Iraq Plans to Produce 6 Mln B/D Crude Oil after 2023Oil prices fell more than $1 per barrel on Thursday after the U.S. and Iran signed ‌an interim agreement that would end the Iran war, reopen the Strait of Hormuz and waive U.S. sanctions on Tehran's oil, boosting the oil supply outlook, Reuters reported.

Brent crude futures were down $1.64, or 2.06%, at $77.91 a barrel as of 0427 GMT, and U.S. West Texas ​Intermediate fell $1.80, or 2.34%, to $74.99 a barrel.

The benchmarks resumed their decline, reversing gains made on Wednesday after ​U.S. President Donald Trump said he could resume his bombing campaign if Iran's leaders "don't ⁠behave".

The sell-off extended as energy markets continued to aggressively price in a faster-than-expected return of Iranian barrels following ​the recent U.S.-Iran memorandum of understanding," IG market analyst Tony Sycamore said in a note.

The 14-point memorandum begins a 60-day ​negotiation period during which Iran will allow toll-free passage through the Strait of Hormuz, a key oil and gas shipping lane. The deal calls for traffic through the strait to be restored to its full capacity within 30 days.