Oil prices experienced a significant drop Monday, reaching their lowest point since March, following a preliminary agreement between the US and Iran. The deal aims to end recent conflict and restore traffic flow through the strategically vital Strait of Hormuz, a critical passage for global oil and gas supplies. Brent crude futures fell nearly 5%, while US West Texas Intermediate crude also saw a substantial decline. A memorandum of understanding is slated to be signed in Switzerland this Friday, according to Pakistani Prime Minister Shehbaz Sharif. The agreement includes the reopening of the Strait of Hormuz within 30 days, under Iranian oversight, and the end of a potential US naval blockade. Analysts suggest the easing of geopolitical tensions is driving the price decrease, as markets anticipate a return to pre-war oil supply levels. However, the speed of production resumption and potential shipping delays remain points of cautious observation for investors.