Oil prices fell sharply on Thursday following the signing of a US-Iran memorandum of understanding. The agreement includes provisions for reopening the Strait of Hormuz, a key global shipping lane. West Texas Intermediate crude dropped 3.41% to $74.18 a barrel during Asian trading hours. Brent crude also experienced a decline, though the specific percentage was not detailed in the report. Market relief over the potential for smoother oil transport contributed to the price decrease. The deal signals a potential easing of tensions between the two countries regarding oil supply routes. This development impacts global energy markets and shipping industries.