05:51 AM EDT, 06/16/2026 (MT Newswires) -- Crude oil prices dropped further on Tuesday as markets await further developments on the reopening of the Strait of Hormuz following an initial deal between the U.S. and Iran to end the war.

Brent crude at last look fell 2.1% to US$81.44/barrel and West Texas Intermediate crude lost 2.4% to $78.81/barrel. This comes after U.S. President Donald Trump said a memorandum of understanding has been signed to end the war in the Middle East, exacerbated by weaker physical demand, Reuters said in a Tuesday report.

The U.S. is set to start a new round of talks in Switzerland on Friday to reach a final agreement, Iranian Foreign Minister Abbas Araqchi said, as reported by Reuters.

Flows through the strait are expected to resume soon, adding to downward pressure on prices, according to analysts. A range of indicators has also pointed to weakening physical oil markets in recent weeks, Reuters quoted Morgan Stanley analysts as saying in a client note.

However, details are not yet available and a permanent deal has not yet been reached, so volatility risks remain, analysts said in the report.