WTI Oil Falls Below $78 to Three-Month Low on Hormuz Reopening Hopes

West Texas Intermediate crude oil extended its decline on Tuesday, falling to its lowest level in three months under $78 per barrel. The drop comes as market participants digest early reports of a potential agreement between the United States and Iran.

Traders are pricing in the possibility that the Strait of Hormuz, a critical chokepoint for global oil shipments, could reopen if diplomatic progress continues. A resumption of normal passage through the strait would ease supply concerns that have supported crude prices in recent months.

The move marks a significant shift from earlier highs, with crude now trading at levels not seen since early this year. Further downside could materialize if concrete steps toward a deal are announced.