Brent crude oil prices slipped below $80 per barrel on Tuesday, marking the first breach of this threshold in over three months. The decline accelerated after news emerged about a US-Iran agreement to reopen the Strait of Hormuz, a critical shipping chokepoint that has been a source of supply disruptions and geopolitical tension in global energy markets.

Leading Wall Street banks responded by trimming their oil price forecasts, reflecting growing confidence that the accord will restore significant volumes of Iranian crude to world markets. The Strait of Hormuz handles roughly one-third of global seaborne oil trade, making its full reopening a major supply catalyst that traders have been pricing in aggressively.

Market gauges tracking oil sector performance tumbled alongside the price drop, with energy stocks and commodity-linked currencies facing pressure. The swift repricing suggests investors are betting on a more balanced market after months of tight supply conditions that had supported prices above the $80 mark.

The development represents a notable shift in the oil market's risk calculus, as geopolitical de-escalation in the Middle East takes precedence over supply concerns. Banks' forecast revisions indicate the market may be entering a new phase of price discovery.