Oil kept plummeting on Tuesday following the agreement between the U.S. and Iran to cease hostilities and begin nuclear negotiations, with Brent crude dropping below $80 a barrel for the first time since March.
Brent crude, the international benchmark, dropped more than 4% and clocked in at $79.79 per barrel at 8:45 a.m. ET, while West Texas Intermediate, the U.S. benchmark, plunged further, standing just above $77 a barrel at the same time.
However, experts have said that it is unlikely that prices will go back to pre-war levels any time soon. Société Générale strategist Kit Juckes said in a note that even though prices are "two-thirds of the way back," the last tranche could take a long time.
Another issue that could hamper efforts to resume normal oil flows and replenish stockpiles is the removal of mines laid by Iran in the Strait of Hormuz.
Western maritime security sources cited by Reuters noted that doing so could take up to 40 or 50 days after a deal. Only then some shipping companies could be confident enough to send their vessels through the key waterway.
"We still consider it very risky for ships to commence transits at this point," Jakob Larsen, chief safety & security officer at shipping association BIMCO, told the outlet. "The threat of mines in the area remains a concern immediately as well as further down the line and mine-free routes need to be established."
The outlet went on to note that the chance of there being mines could lead companies to refrain from crossing. Supertankers and their cargo are worth some $300 million.
Another report noted that top Trump officials are skeptic about Iran's willingness to make concessions related to its nuclear program as part of a deal with the U.S.
Officials include CIA Director John Ratcliffe, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, Axios detailed.
Ratcliffe has cited evidence gathered by U.S. intelligence agencies to back his claim. It showed that Iranian officials were discussing the deal in a way that was different from what they were telling mediators.
Sources cited by the outlet claimed that Ratcliffe and Rubio said they doubted the Iranians would agree to make the concessions needed to move the deal forward. "The intelligence reflects that the Iranian intentions are not in line with their commitments under the deal," one of the sources told Axios.
The White House reacted to the report, with an official saying "President Trump listens to all opinions on any given issue — but everyone understands he is the final decision-maker."
"This MOU meets all of the redlines that the administration has long articulated by ensuring that Iran can never possess a nuclear weapon, they cannot keep their highly enriched uranium, and they cannot hold the world's energy supply hostage," the official added.
