Oil Prices Dip on US-Iran Peace Treaty Hopes, Disruptions Loom

Oil prices declined on Thursday as investors monitored developments in the proposed US-Iran peace treaty. The agreement, which could lead to an end of the five-month conflict, would grant Iran control over ships entering the Gulf through the Strait of Hormuz.

The Brent crude futures price fell by 0.5% to $79.08 a barrel, while U.S. West Texas Intermediate (WTI) crude futures dropped by 0.7% to $74.69 a barrel.

Goldman Sachs has warned that Brent could rise to $120 a barrel if disruptions to shipping through the Strait of Hormuz continue.