Markets tumble after reports of a US-Iran agreement aimed at ending conflict and reopening the Strait of Hormuz.
Image: CNN
Oil prices fell sharply on Monday, dropping about $4 per barrel to their lowest level in three months.
Brent Crude declined 4.7% to $83.22 a barrel, while West Texas Intermediate fell 5.1% to $80.54 a barrel.
The selloff followed reports that Donald Trump and Iranian officials signed a memorandum of understanding aimed at ending the conflict between the two countries.
The proposed agreement also includes plans to reopen the Strait of Hormuz, a key route for global oil shipments.
Investors reacted positively to the prospect of reduced tensions in the region, easing concerns over potential disruptions to oil supplies.
An official signing ceremony for the agreement is expected to take place in Geneva later this week.
