Oil rebounds on concerns about US-Iran peace deal, restoration of supply

Oil's rebound follows a tentative US–Iran peace framework and signals that a full resumption of Hormuz‑linked supply could take longer. Brent rose 26 cents to $83.42 a barrel, while U.S. WTI gained 46 cents to $81.12 as of 0108 GMT. Prices slid nearly 5% on Monday after President Trump said a memorandum of understanding to end the US–Israel conflict with Iran had been signed. The Strait of Hormuz, which previously carried about one fifth of global oil, has been shut in during broader tensions, limiting roughly 14 million barrels per day. Details of the memorandum were not released publicly, and a durable truce remains unresolved. Early indications suggest the agreement would reopen Hormuz and extend a 60‑day ceasefire, giving negotiators time to address Iran's nuclear program. Iranian President Masoud Pezeshkian called the step important but cautioned that the final truce has yet to take shape. Analysts warned that the path back to normal supply is not straightforward, with mine clearance, full marine insurance, and vessel readiness still required. A senior Iranian official said Tehran would freeze its nuclear activity pending a final accord, refraining from further enrichment or expansion of facilities.