Oil prices fell again following the ceasefire agreement between the U.S. and Iran
Global oil prices fell sharply by more than $1 per barrel on Thursday, June 18, after the U.S. and Iran signed a temporary ceasefire agreement.
Brent crude oil futures fell by $1.64 (2.06%) to $77.91 per barrel.
U.S. West Texas Intermediate (WTI) crude oil futures fell by $1.80 (2.34%) to $74.99 per barrel as of 04:27 GMT (06:27 Kyiv time).
The price drop came after markets partially gave up the previous day’s gains, when U.S. President Donald Trump’s statements about a possible resumption of strikes against Iran temporarily pushed oil prices higher.
“The slump continued, as energy markets continued to actively price in, sooner than expected, the return of Iranian oil to the market following the recent signing of a memorandum of understanding between the U.S. and Iran,” noted IG analyst Tony Sycamore.
Experts warn that even after a possible resumption of supplies through the Strait of Hormuz, the market may remain volatile.
Mukesh Sahdev, CEO of the energy consulting firm XAnalysts, noted:
“The volume of oil returning to the market after the Strait of Hormuz reopens may be limited, as some shipments have already been sent via alternative routes, and shipowners may continue to refrain from sending tankers to the region due to fears that the agreement could fall through.”
According to estimates by the International Energy Agency (IEA), if the agreement between the U.S. and Iran is implemented, the global market could shift from a shortage to a significant surplus of oil by 2027.
Analysts also point to an additional source of pressure—expectations of a possible interest rate hike by the U.S. Federal Reserve, which could slow economic growth and reduce demand for energy.
This was reported by Reuters.
The previous peace agreement between the U.S. and Iran caused a sharp drop in oil and gas prices, but analysts warn that a rapid resumption of energy supplies to the global market should not be expected. The reasons include damaged infrastructure, logistical difficulties, and threats to shipping.
Global oil prices continued to fall on June 16 as market participants assessed the likelihood of a resumption of supplies through the strategically important Strait of Hormuz.
Oil prices are falling following a peace agreement between the U.S. and Iran — Reuters.
Oil prices fell following Trump’s statement on Iran — Reuters.
