U.S. officials said on Sunday that Washington and Iran had reached a principle agreement to reopen the Strait of Hormuz, a chokepoint that supplies up to one‑fifth of global oil. The deal still needs final approval, and analysts expect the outcome to influence commodity markets for months in the next quarter and predicting volatility ahead.

Brent crude slid to about $99 a barrel, down 1.5 percent, while West Texas Intermediate fell close to 5 percent at $92. The modest dip suggests traders await confirmation of the deal and consider that shipping may not normalize until months after a formal agreement for global oil supply and market participants remain cautious as.

U.S. gasoline prices slipped to a national average of $4.51 a gallon, down slightly from the peak reached after the war began. Diesel followed a similar path, easing to $5.62. Prices lag crude movements, often reacting days later, which keeps retail fuel costs somewhat detached from immediate market swings for consumers as prices settle later.

S&P 500 futures hint at a modest uptick of less than 1 percent when trading resumes, reflecting investor optimism about the potential easing of geopolitical tensions. Market participants weigh the Strait’s reopening against the risk of a delayed implementation, keeping a cautious stance on how quickly oil supply dynamics will shift for global economy growth.