Brent crude steadies near three-month low of $78.98

• Brent crude futures stabilized at $78.98 a barrel following a tentative U.S.-Iran peace agreement.
• The stabilization follows a consecutive two-day market drop where oil benchmarks plummeted by 5%.
• Traders are balancing near-term inventory restocking efforts against an international forecast of a major supply overhang.

Brent crude futures steadied near a three-month low at $78.98 a barrel as investors weighed a U.S.-Iran peace deal.

The minor gain followed two straight sessions of 5% declines driven by hopes that the Strait of Hormuz would reopen.

Analysts stated that any resumption of oil shipments through the critical chokepoint will materially alter the global oil balance.

The newly reached interim agreement extends a tenuous ceasefire by 60 days to facilitate talks toward a permanent truce.

The International Energy Agency warned of a 2027 market overhang where global supply expands by 8 million barrels per day.

This projection coincides with Goldman Sachs reducing its fourth-quarter Brent crude price forecast down to $80 per barrel.