Oil falls below $80 after U.S.-Iran agreement.

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Oil prices fell below $80 a barrel on Tuesday amid optimism that the Strait of Hormuz will reopen, easing inflationary pressure on global economies.

The decline accelerated more than five percent after The Wall Street Journal reported that Washington could lift sanctions on Iranian crude as part of a deal to end the Middle East conflict, allowing Tehran to sell crude and refined products immediately.

International benchmark Brent North Sea crude closed at $78.96 a barrel, down 5.1 percent.

The main U.S. oil contract, West Texas Intermediate, dropped 5.8 percent to $76.05 a barrel.

Oil industry experts and shipping companies warn that restoring normal operations after the strait’s near shutdown will take time.

Markets view the situation as much improved compared with the worst‑case scenario of continued fighting with no timetable for the vital waterway’s reopening, analysts said.

Iranian media reported that three oil tankers and two cargo ships had already passed through the strait.

Meanwhile, Wall Street stocks had a mixed day, with the Dow rising to a second consecutive record close, while the S&P 500 and Nasdaq retreated.

Briefing.com analyst Patrick O’Hare described the movements as a rotation.

“We’re not seeing a mass exodus out of the market,” said O’Hare, who views the dynamics as consistent with a bull market.

Europe’s main markets closed higher, while Asia ended mixed.

“Although the deal has not been formally signed, there already appears to be a peace dividend for markets,” said Kathleen Brooks, research director at trading group XTB.

“We are seeing European markets play catch‑up with the U.S., and this could continue, as some European indices remain below their pre‑war levels,” including London’s FTSE 100 index, she added.

Tehran blockaded the strait after the United States and Israel launched strikes against Iran on February 28. Washington later halted shipping to and from Iranian ports.

Despite the fall in oil prices, analysts warn that market conditions could remain tight for weeks or even months after the conflict ends.

This week’s focus is also on a wave of central bank decisions.

The U.S. Federal Reserve chair, Kevin Warsh, kicked off his first meeting in charge of the central bank’s rate‑setting committee on Tuesday, with policymakers largely expected to keep rates steady as the war fallout ripples through the world’s largest economy.

The Bank of England is also expected to stand pat.

The yen was little changed after the Bank of Japan on Tuesday raised interest rates to their highest level since 1995.

Elon Musk’s SpaceX posted another positive performance, ending up around five percent after earlier soaring more than 17 percent. The rally has lifted SpaceX above Amazon to become the fifth largest company in the world by market value.