Crude oil prices fall after announcement of US-Iran deal
New Delhi, June 15: Prices of international crude oil fell to their lowest levels since March after US President Donald Trump and Iran announced a peace deal to end the conflict and restore shipping through the Strait of Hormuz.
Trump, while making the announcement about completion of the deal, said, “I authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow.”
He later added that the Strait of Hormuz will be reopened to allow the transit of commercial vessels on Friday after the agreement is signed.
Brent Crude futures dropped $3.58, or 4.1%, to $83.75 per barrel, while US West Texas Intermediate (WTI) crude declined $4.01, or 4.72%, to $80.87 per barrel.
Both benchmarks had already registered losses of more than 3% in the previous session.
Back home, crude oil prices on Multi Commodity Exchange (MCX) also witnessed a similar downward movement, tracking global prices. MCX crude oil prices tanked 5.32% to ₹7,544 per barrel.
Trump, while annoucing completion of the peace deal, said the Strait of Hormuz would reopen from Friday without any transit charges and that the US naval blockade on Iranian ports would be lifted.
Also Read:
Global energy markets have remained under intense pressure due to the closure of the Strait of Hormuz, which accounts for most of the international flow of energy, since the war began on February 28.
The war was launched by the US and Israel with joint air attacks on Iran, which retaliated by targeting American interests in the Gulf region.
Although oil prices surged in the early stages of the conflict, they have retreated in recent weeks amid growing expectations of a diplomatic breakthrough between Washington and Tehran and indications that some crude shipments through the strait have resumed.
Additional factors easing market concerns include the release of emergency oil reserves by developed nations and reduced crude imports by major buyers, particularly China. (BVI)
