• WTI Oil prices extend losses to three-month lows below $78.00 as details of the US-Iran deal emerge.
• Hopes of a toll-free reopening of the Strait of Hormuz have sent oil prices lower this week.
• Later on Tuesday, the API Crude Oil Stocks data is expected to highlight that crude reserves keep falling.

Crude Oil depreciates further on Tuesday, as the first details of the US-Iran deal start to emerge and hopes of the reopening of the key Strait of Hormuz grow. The US benchmark West Texas Intermediate (WTI) barrel trades at $77.77 at the time of writing, its lowest level since early March, after having depreciated nearly 25% over the last four weeks.

US President Donald Trump told reporters at the G7 summit that the peace deal with Iran is entering a “second stage,” which, in his view, will be easier. Trump, who is also expected to meet the leaders of Qatar and the United Arab Emirates (UAE) during the summit, affirmed that the war in Lebanon is “a minor one” and that it is not expected to be an obstacle to lasting peace in Iran.

Furthermore, the Israeli newspaper Hareetz, citing sources familiar with the process, stated earlier on Tuesday that the deal includes the release of an estimated total of $24 billion of frozen Iranian assets in exchange for a toll-free reopening of the Strait of Hormuz.

In the meantime, Iran’s Deputy Foreign Minister, Takht Ravanchi, said that the controversial nuclear issues will be dealt with in the next phase, including aspects concerning stockpiles, uranium enrichment and Iran’s nuclear needs.

Later on the day, the Crude Oil Stock report released weekly by the American Petroleum Institute (API) is expected to show a slowdown in the depletion of US stockpiles. Crude stocks are seen declining by 4.5 million barrels in the week of June 5, after a 9.1 million-barrel decline the previous week. Commercial Oil reserves, however, have been dropping continuously since mid-April, raising concerns about an Oil shortage.