Ammon News - Oil prices extended ​losses on Tuesday, as markets weighed prospects for resumption of supply through the key Strait of Hormuz against ‌shaky physical market drivers and a lack of details from a preliminary deal to end the Iran war.

By 0436 GMT, Brent crude futures fell 25 cents, or 0.3%, to $82.92 a barrel and U.S. West Texas Intermediate inched down 9 cents, or 0.1%, to $80.66 a barrel.

On Monday, oil prices fell nearly 5% ​to their lowest close since March 4, after U.S. President Donald Trump said a memorandum of understanding was signed ​to end the U.S.-Israeli war with Iran, though full details have not been made public.

The hostilities led to ⁠the closure of the Strait of Hormuz that typically carried one-fifth of the world's oil supply before the conflict.
Some analysts expect ​a resumption of supply soon via the Strait, with other factors weighing down physical market prices.

China's ​crude imports slumped 29% in May to their lowest in eight years, extending a dramatic decline for the world's importer, with its liftings of Saudi Arabia ‌crude ⁠expected to also fall in July.

Early indications are that the U.S.-Iran deal would reopen the blockaded Strait of Hormuz and extend a ceasefire for 60 days, allowing negotiators to tackle difficult issues such as the future of Iran's nuclear programme.

On Monday, Iranian President Masoud Pezeshkian called the U.S.-Iran pact an "important step" toward stopping the fighting but cautioned a final agreement for a lasting truce "has yet to take shape".

But ​with full details yet to ​emerge and a permanent truce ⁠still to be reached, overall price weakness is limited.

On Monday, a senior Iranian official said Iran would freeze its nuclear activity until a final agreement, and refrain from further uranium enrichment ​or expansion of nuclear facilities.

Reuters