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Global crude oil price dropped to $82 a barrel on Monday as the United States, Israel, and Iran reached a deal to end the Middle East war on all fronts including Lebanon, and reopen the vital Strait of Hormuz.
Brent crude, the global oil benchmark, went down by 5 percent to $82.90 per barrel.
The last time the oil trade at this range was in March.
The US West Texas Intermediate crude also fell 4 percent to hit $80 per barrel.
When the conflict began in February, Brent had risen from $62 on February 16 to $79 per barrel on March 2 amid escalating geopolitical tensions in the Middle East.
In the course of the war, oil price rose as high as $125 per barrel in April.
However, the recent drop follows the announcement of a deal to end the conflict.
According to reports, the United States and Pakistan said the agreement to reopen the vital Strait of Hormuz, was to be signed on Friday in Switzerland, signalling what would be a major breakthrough to ending months of war that have taken thousands of lives and roiled energy markets.
Few of the details were made public, but US President Donald Trump said the Strait of Hormuz, a key conduit for global oil supplies, would reopen after the planned signing of the deal.
“The Deal with the Islamic Republic of Iran is now complete,” US President Donald Trump posted Sunday on social media.
“Ships of the World, start your engines. Let the oil flow!”
Soon after, Kazem Gharibabadi, Iran’s deputy foreign minister, said in televised comments that the deal put an “immediate end” to the countries’ war and that they would hold talks within two months to seek a “final agreement”.
