On Monday, stock markets rallied worldwide and oil prices eased after the United States and Iran reached a tentative deal to get the global flow of crude going again. The S&P 500 rose 1.7% and the Dow climbed 0.9% to a record. The Nasdaq composite jumped 3.1%.
Brent crude fell 4.8% on expectations that the U.S.-Iran agreement might reopen the Strait of Hormuz, where much of Asia gets its oil supply. But some analysts have urged caution, noting many issues remain uncertain. Negotiations with Iran are expected to continue over the next 60 days. Even after Hormuz reopens on Friday as expected, it will likely take months for the energy industry to get back to full speed.
Oil prices have declined recently on hopes for an extension of the ceasefire in the war, falling from the $100 plus levels they were at a few weeks ago. Before the war, oil was trading at about $70 a barrel.
Early Tuesday, benchmark U.S. crude was down $2.03 at $78.72 a barrel. Brent crude, the international standard, declined $1.82 to $81.35 a barrel.
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