Why did Brent Crude (MARKET:BRENT) prices drop to a three-month low on Tuesday?

Brent Crude (MARKET:BRENT) prices fell because markets are weighing the potential resumption of oil supplies through the Strait of Hormuz following a preliminary peace deal. Prices dropped 1.7% on Tuesday to reach $81.73 a barrel.

What are the updated price forecasts for Brent Crude (MARKET:BRENT) following the interim agreement?

Goldman Sachs (NYSE:GS) lowered its fourth-quarter forecast for Brent Crude (MARKET:BRENT) to $80 a barrel from $90 a barrel. The financial institution also reduced its 2027 average estimate down to $75 a barrel.

How is physical market demand affecting Brent Crude (MARKET:BRENT) prices?

Weakening physical demand is putting downward pressure on Brent Crude (MARKET:BRENT) benchmarks. Notably, crude imports for major consumers like China slumped by 29% in May to an eight-year low.

What does the preliminary peace deal mean for Brent Crude (MARKET:BRENT) supply timelines?

The initial agreement is expected to reopen the blockaded Strait of Hormuz and establish a 60-day ceasefire to stabilize Brent Crude (MARKET:BRENT) supply routes. Analysts assume exports from the Gulf region will return to pre-war levels by late July.

How is the Strait of Hormuz closure impacting Brent Crude (MARKET:BRENT) markets?

The closure of the Strait of Hormuz disrupted a vital shipping corridor that typically handles approximately one-fifth of global Brent Crude (MARKET:BRENT) supplies. Markets are closely monitoring the upcoming phased reopening of this blockaded waterway.

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Brent crude oil drops to three-month low of $81.73

Written by Mahathir BayenaPublished Jun 16, 2026, 9:24 AM

Brent crude futures fell 1.7% to a three-month low of $81.73 a barrel on Tuesday.
The price decline follows news of a preliminary memorandum of understanding to halt regional conflict.
Market analysts expect the geopolitical agreement to allow a phased reopening of the Strait of Hormuz.

Brent Crude futures fell 1.7% to a three-month low of $81.73 a barrel on Tuesday.

This decline extended a 5% drop from Monday triggered by news of a preliminary peace agreement.

"The first phase encompassing the Geneva signing was easy," said DBS Bank Head of Energy Research Suvro Sarkar.

Morgan Stanley (NYSE:MS) analysts noted that weakening physical markets included a 29% drop in Chinese crude imports.

The preliminary deal aims to reopen the blockaded Strait of Hormuz and extend a ceasefire for 60 days.

Goldman Sachs (NYSE:GS) subsequently lowered its fourth-quarter price forecast to $80 a barrel.

Brent crude oil drops to three-month low of $81.73

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