Oil prices plummeted amid news about the U.S. and Iran
Global oil prices fell by about 5% following news of a possible agreement between the U.S. and Iran. Investors reacted to Donald Trump’s statement that a deal was close and began to price in an easing of market tensions, according to The Times of Israel.
Amid these expectations, the international benchmark Brent fell to $94.42 per barrel, while U.S. WTI crude dropped to $89.95. Both contracts lost about 5% of their value in a short period.
Markets are highly sensitive to any signals of a possible end to the conflict or at least a continuation of the ceasefire between the U.S. and Iran. After all, this directly affects oil supplies from the Middle East.
In fact, traders are currently betting on expectations: if tensions ease, more oil could return to the market, which means falling prices. “Investors are awaiting news of a possible extension of the ceasefire between the U.S. and Iran,” market analysts note.
At the same time, experts warn that the situation remains unstable. Any new escalation or breakdown in negotiations could quickly reverse the trend and push prices back up. For now, the market is in a wait-and-see mode—and this is precisely what is driving oil prices right now.
Additionally, the Pakistani tanker Shalamar became the first vessel to pass through the Strait of Hormuz carrying crude oil since the U.S. blockade began on April 13.
Iran announced the opening of the Strait of Hormuz to commercial shipping for the duration of the ceasefire in Lebanon.
Iran estimates the damage from US and Israeli bombings at $270 billion and is demanding compensation from five Arab countries
Iran promises to respond to the blockade of its ports by blocking the Red Sea
