New York (HRNW)- Global crude oil prices have fallen sharply following positive developments regarding a ceasefire between the United States and Iran and the potential restoration of normal shipping through the Strait of Hormuz, easing concerns over global supply disruptions.
According to international media reports, Brent crude oil prices dropped to a three-month low after news emerged of a memorandum of understanding between Iran and the United States. Brent crude futures fell by $2.02, or 2.4 percent, to $81.15 per barrel, briefly touching $80.89, the lowest level since March 4.
Similarly, US West Texas Intermediate (WTI) crude declined by $2.22, or 2.8 percent, to $78.53 per barrel, also hitting an intraday low of $78.27, its weakest level since March 10.
Market analysts say the sharp decline reflects growing expectations that shipping routes through the Strait of Hormuz may gradually normalize, reducing fears of supply disruptions in global energy markets.
The Strait of Hormuz is one of the world’s most critical oil transit chokepoints, through which a significant portion of global crude supplies pass. Any instability in the region typically has a direct impact on international oil prices.
Experts further suggest that if progress continues on the US-Iran agreement and maritime activity in the Strait of Hormuz is fully restored, global supply risks could ease further, potentially leading to continued downward pressure on oil prices.
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