LONDON (Web Desk) – Global crude oil prices posted a sharp decline after reports suggested progress towards a ceasefire and a potential agreement between Iran and the United States, easing concerns about disruptions to international energy supplies.
According to international media reports, expectations surrounding a consensus on a memorandum of understanding (MoU) between Tehran and Washington pushed Brent crude prices to their lowest levels in more than three months.
Brent crude futures fell by $2.02, or 2.4 per cent, to $81.15 per barrel. During trading, the benchmark briefly slipped to $80.89 per barrel, its lowest point since March 4.
Meanwhile, West Texas Intermediate (WTI) crude dropped by $2.22, or 2.8 per cent, to trade at $78.53 per barrel. It also touched an intraday low of $78.27 per barrel, marking its weakest level since March 10.
Market analysts attributed the decline to growing expectations that shipping operations through the Strait of Hormuz could soon normalise, reducing fears of potential supply disruptions.
The Strait of Hormuz remains one of the world’s most critical maritime corridors, handling a substantial portion of global oil exports. Any escalation or easing of tensions in the region often has an immediate impact on international energy markets.
Analysts said that if momentum towards an Iran-US agreement continues and maritime traffic through the Strait of Hormuz remains uninterrupted, concerns over oil supplies could diminish further, keeping downward pressure on crude prices in the weeks ahead.
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