Sri Lanka, June 18 -- Global crude oil prices extended their decline on Thursday after the United States and Iran signed an interim peace agreement, easing concerns over oil supply disruptions in the Middle East and raising expectations of increased global crude exports.

Brent crude futures fell 1.12% to US$78.66 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 1.28% to US$75.81 a barrel, as traders anticipated the gradual return of Iranian oil to the global market.

The agreement includes plans to reopen the Strait of Hormuz, one of the world's most critical oil shipping routes through which nearly one-fifth of global oil supplies pass. The memorandum provides for a 60-day negotiation period and aims to restore full mar...