Oil prices slump to three-month low after U.S. and Iran agree to framework of peace deal

West Texas Intermediate and Brent crude fell sharply after U.S. and Iranian officials agreed to a 60-day ceasefire framework, with final deal terms still being negotiated. The development directly undercuts the Iranian supply-disruption risk premium that has been embedded in oil prices, raising the prospect of sanctions relief and additional barrels flowing to market if a final agreement is reached.

The key watch now is whether the ceasefire holds and negotiations progress to a full deal — a breakdown would quickly reverse the supply-risk repricing. Energy equities, especially E&P names leveraged to oil prices, face headwinds in the near term, while airlines, refiners with margin exposure, and energy-intensive industrials could see relief.