Brent climbs to $79.43 as traders weigh durability of US-Iran peace deal
Both benchmarks fell about 5% for a second straight session on Tuesday to three-month lows on hopes a U.S.-Iran deal would allow oil flows through the Strait.
"Oil markets retreated on expectations the Strait of Hormuz would reopen following the peace agreement, but traders held off further selling pending details," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
WTI is likely to remain volatile within $10 above or below $80 a barrel, he added.
The memorandum of understanding, not yet public, extends a tenuous ceasefire announced in April by another 60 days to allow talks toward a permanent truce.
Under the deal, the United States would lift its blockade of Iran's ports, while Tehran would oil tanker traffic through the Strait, effectively blocked since U.S. and Israel strikes on February 28.
Still, industry officials say a full return to pre-war production and refining levels is likely to take weeks, months or even years.
Israel has distanced itself from both the April ceasefire and the latest U.S.-Iran agreement, adding uncertainty to whether the new truce will hold.
Israeli drone strikes targeted three vehicles in southern Lebanon on Tuesday, killing at least four people and wounding others, Lebanon's National News Agency (NNA) reported. Trump issued a rare public rebuke of Israel's military tactics.
Meanwhile, China's crude oil throughput in May fell 9.1% on the year to the lowest level in almost four years, data showed, also signalling that refiners were starting to draw on stockpiles amid the Iran war.
The American Petroleum Institute report showed U.S. crude stocks fell by 8.3 million barrels in the week ended June 12, the sources said. It exceeded expectations for a 4.6 million barrels draw, with official numbers due from the Energy Information Administration at 10:30 a.m. ET (1430 GMT) on Wednesday. [EIA/]
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Exchange-Traded Funds, Equity Futures Higher Pre-Bell Tuesday Amid Lower Oil Prices
09:12 AM EDT, 10/06/2026 (MT Newswires) -- The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.5% and the actively traded Invesco QQQ Trust (QQQ) was 0.6% higher in Tuesday's premarket activity amid lower oil prices and optimism around tech stocks. US stock futures were also higher, with S&P 500 Index futures up 0.5%, Dow Jones Industrial Average futures advancing 0.7%, and Nasdaq futures gaining 0.7% before the start of regular trading. The US international trade deficit widened to $105.57 billion in August from a $92.83 billion gap in July, compared with a $102.1 billion gap expected in a survey compiled by Bloomberg as of 7:35 am ET. In premarket activity, bitcoin was up by 0.7%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 1% higher, Ether ETF (EETH) advanced 1.6%, and Bitcoin & Ether Market Cap Weight ETF (BETH) was flat. Power Play: Health Care The State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.3%, while the Vanguard Health Care Index Fund (VHT) and the iShares US Healthcare ETF (IYH) were inactive. The iShares Biotechnology ETF (IBB) was 0.7% higher. Option Care Health (OPCH) shares were up 21% pre-bell Tuesday after McKesson (MCK) and CD&R agreed to buy the company for roughly $5.80 billion. Winners and Losers: Technology The State Street Technology Select Sector SPDR ETF (XLK) gained 0.7%, the iShares US Technology ETF (IYW) was 0.5% higher, and the iShares Expanded Tech Sector ETF (IGM) was inactive. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) was inactive, while the iShares Semiconductor ETF (SOXX) rose by 0.5%. Xanadu Quantum Technologies (XNDU) shares were up 7% in premarket activity after the company entered a multiyear deal with GlobalFoundries (GFS). GlobalFoundries was 1.4% higher. Financial The State Street Financial Select Sector SPDR ETF (XLF) advanced 0.3%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.9%, while its bearish counterpart, Direxion Daily Financial Be
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