Following U.S. President Donald Trump’s announcement of a peace agreement between the United States and Iran, crude oil prices in the international market have begun to decline. CNN reports that prices have already dropped by approximately 4 percent.
In a report published today, Monday, CNN stated that the price of Brent crude, the global benchmark, fell by 3.9 percent per barrel following President Trump's announcement. As a result of this drop, Brent crude is currently trading at $84 per barrel.
The price of West Texas Intermediate (WTI), another major crude oil benchmark, also witnessed a sharp decline. According to CNN's data, WTI prices tumbled by 4.8 percent following Trump’s announcement, bringing it down to $81 per barrel.
On Sunday evening, President Trump announced on his social media platform, Truth Social, that a war-ending agreement with Iran had been finalized, with the official signing ceremony scheduled for June 19 in Geneva, the capital of Switzerland.
Crude oil prices began a downward trajectory immediately after his announcement. Officials from various energy market analytics firms noted that this marks the first time since March 4 that crude oil prices in the international market have fallen below $90 per barrel.
Market analysts remarked that while this price drop is a highly positive sign for the market, it will take some time for conditions to completely normalize.
Bob McNally, president of the energy market research firm Rapidan Energy Group, provided an immediate reaction to US media outlet ABC on Sunday, stating: "On February 28, the day the conflict began, crude oil prices in the international market were hovering around $70 per barrel. Following the outbreak of war, prices began to surge, eventually crossing the $100 mark."
"Oil dropping below $90 is undoubtedly positive. However, even if shipping traffic through the Strait of Hormuz returns to normal, it will take a little more time for the market to adjust back to pre-war levels," McNally told ABC.
Source: CNN
