US-Iran Ceasefire Deal Sparks Oil Price Volatility
Oil prices have plummeted nearly 2% on Friday and are poised for their steepest weekly decline since April, as market participants await a potential US-Iran ceasefire deal.
The Brent crude futures contract for July is down $1.66 or 1.77%, at $92.05 a barrel, while the August contract is down $1.63 or 1.76%, at $91.07. WTI US oil futures are down $1.55 or 1.74% at $87.35.
Analysts say that despite declining oil flows through the Strait of Hormuz and dwindling inventories, market attention remains focused on a possible deal between the US and Iran.
The agreement would lift restrictions on shipping through the Strait, which has been a major concern for the global oil market. However, UBS analyst Giovanni Staunovo notes that 'the price drop could be forcing some market players to close their long positions.'