Lagatar24 Desk
New Delhi: Crude oil prices tumbled sharply following news of a peace agreement between the US and Iran, with Brent crude falling more than 3.5 percent to $83.48 per barrel and US crude WTI (West Texas Intermediate) dropping nearly 5 percent to $80.61 per barrel.
Trump’s Announcement and Hormuz Strait Reopening Trigger Fall
The sharp decline in prices came after Donald Trump announced a peace agreement with Iran along with the immediate reopening of the Strait of Hormuz. Crude oil prices had been soaring since the outbreak of the US-Iran conflict in February, with Brent crude touching as high as $120 per barrel at one point.
Prices Were Around $70 Before the War
Before the conflict began, crude oil was trading at around $70 per barrel. Tensions in West Asia had led to the closure of the Strait of Hormuz, a critical maritime route through which nearly 20 percent of the world’s crude oil passes. The announcement of its reopening is expected to bring significant relief to global markets.
