Oil Prices Plummet on US-Iran Ceasefire Deal
Oil prices plummeted over 1% on Thursday to their lowest level since the Iran war began, as a US-Iran ceasefire deal bolstered global supply prospects. Brent crude futures dropped $1.02 or 1.28% to $78.53 per barrel at 1036 GMT, while WTI fell $1.48 or 1.93% to $75.31.
The agreement marks a significant development in the conflict, allowing Iran to reopen the Strait of Hormuz and ease US sanctions on Tehran. Industry analysts expect a gradual recovery in oil flows through the strait, but prices may not plummet due to ongoing supply losses and higher demand.
Goldman Sachs predicts Gulf exports will normalize by end-July, with crude production recovering by October. BNP Paribas, however, does not anticipate a return to pre-war prices, viewing $75 per barrel as a 'durable floor for the foreseeable future.'