Oil prices plummet as Donald Trump announces peace deal and Strait of Hormuz reopening hopes rise

Global oil prices tumbled on Monday after Donald Trump announced a US-Iran peace agreement, fuelling expectations that the crucial Strait of Hormuz could soon reopen to commercial shipping.

Brent crude fell 4.7 per cent to $83.24 a barrel, extending losses recorded on Friday and marking a sharp retreat from its May peak of $126.41.

Despite the decline, the benchmark international oil price remains above the $70 level seen before hostilities began in late February.

The latest fall left Brent at its lowest level since the early stages of the conflict on March 10.

President Trump declared on Sunday that the agreement was "now complete" and urged shipping traffic to resume operations through the region.

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