Oil prices show little movement after sharp decline

Since the sharp decline over the weekend and early Monday following the agreement between the U.S. and Iran on a framework deal to end the conflict, prices have been hovering around the $83 mark.

Meanwhile, according to state media reports, the first Iranian ships have crossed the area in the Gulf of Oman affected by the U.S. naval blockade. At least three oil tankers and two cargo ships reportedly passed through the zone on Monday evening without incident, according to reports from Iranian broadcaster Press TV and others, citing well-informed sources.

After weeks of negotiations, the U.S. and Iran reached a framework agreement on Monday night to end the war, which is set to be signed in Switzerland on Friday. A key point of contention until the very end was the opening of the Strait of Hormuz.

A lack of details continues to cause caution in the market. According to the Bloomberg news agency, officials at relevant energy authorities in the Persian Gulf reported a flood of inquiries about whether crude oil could once again be transported through the Strait of Hormuz. Shipping companies and traders noted that they needed more clarity before sending ships on this route.

“The earliest that oil supply can return to pre-war levels is the end of July,” said analyst Pavel Molchanov of Raymond James. First, all logistical obstacles must be resolved before supply can normalize.