Oil prices fall to three-month low ahead of US-Iran agreement

Oil prices have fallen sharply to their lowest levels in three months, as markets reacted positively to the anticipated signing of a formal agreement between Washington and Tehran later this week.

Brent crude futures dropped $3.29, or 4 percent, to $79.88 a barrel, while US West Texas Intermediate crude fell $3.82, or 4.7 percent, to $76.93, according to Reuters.

The decline extends losses seen earlier in the day, when oil prices had already fallen by more than 2 percent.

Both benchmarks had been trading between $65 and $70 a barrel before the US and Israel launched their war on Iran on 28 February, with concerns over regional instability and potential supply disruptions having pushed prices higher in the months since.