Oil prices fall after US and Iran peace deal as Trump’s claim becomes reality | World | News

Oil prices fell after the peace agreement reached between the USA and Iran.

With the reopening of the Strait of Hormuz, prices fell immediately after the announcement.

Prices fall as president in early trading in Asia Donald Trump He claimed that ‘Oil will flow’.

Brent crude, the global oil benchmark, was down 3.8 per cent at $84.02 (£62.48) per barrel, while oil traded in the US was down 4.1 per cent at $81.40 per barrel.

Pakistan said the agreement will be officially signed in Switzerland on Friday.

Specific points of the agreement have not yet been ratified by both countries, but Iranian state media has published details of a draft 14-point memorandum of understanding.

This includes lifting the US naval blockade within 30 days and reopening the Strait of Hormuz within 30 days “in accordance with Iranian regulations.”

The Bosphorus was effectively closed shortly after the United States and Israel launched an air strike on Iran on February 28.

The Bosphorus is responsible for transporting approximately 20 percent of the world’s oil and gas resources.

After the agreement was reached, Trump made several posts on Truth Social.

He claimed to have succeeded where other leaders had failed, and once again emphasized that ‘oil will flow around the world again’.

His message includes the following statements: “This Grand Agreement will bring Peace and Security to the entire Region.

“Many presidents before me have tried to make peace with Iran, and they have all failed. For the first time, the region’s leaders have found a President who can help them achieve true peace.

“With the signing of the Agreement on Friday and the opening of the Bosphorus for the purpose of clearing mines, oil will flow from both ends again for the Region and the World!”

The US president spoke to the New York Times on Sunday afternoon and said the deal with Iran ensures the Strait of Hormuz will be “permanently free”.

During the conflict, oil prices have continued to rise fluctuatingly since February.

According to the RAC, the average price of unleaded petrol in May rose to 158.52 pa per liter.

Despite the deal being reached, earlier forecasts from investment bank JP Morgan said global oil prices would remain “in the low $100s” for much of this year even if the Strait of Hormuz reopened.

It is estimated that oil supplies in the region will not return to normal service quickly.