Washington, June 18 (SANA)Oil pricesfell by more than $1 per barrel on Thursday, extending earlier losses after theUnited States and Iransigned an agreement aimed at de-escalating tensions and reopening the Strait of Hormuz.

Brent crude futures dropped $1.64, or 2.06%, to $77.91 a barrel, while US West Texas Intermediate (WTI) fell $1.80, or 2.34%, to $74.99 a barrel, according to Reuters.

Earlier in the session, prices had already weakened following reports of a temporary US–Iran understanding. Brent fell 89 cents, or 1.12%, to $78.66 a barrel at 00:05 GMT, while WTI declined 98 cents, or 1.28%, to $75.81 a barrel.

US officialssaid Washington and Tehran signed a memorandum of understanding remotely aimed at ending hostilities and restoring full maritime traffic through theStrait of Hormuz, adding that the deal has already taken effect.

Under the agreement, Iran will allow vessels to transit the strait without fees during a 60-day negotiation period, with shipping through the waterway expected to return to full capacity within 30 days.