𝗢𝗶𝗹 𝗣𝗿𝗶𝗰𝗲𝘀 𝗩𝗼𝗹𝗮𝘁𝗶𝗹𝗲 𝗔𝗳𝘁𝗲𝗿 𝗝𝗗 𝗩𝗮𝗻𝗰𝗲 𝗖𝗼𝗺𝗺𝗲𝗻𝘁𝘀 𝗼𝗻 𝗜𝘀𝗿𝗮𝗲𝗹 𝗖𝗲𝗮𝘀𝗲𝗳𝗶𝗿𝗲
Oil prices moved after US Vice President JD Vance issued warnings to Israel regarding Hezbollah in Lebanon. These comments created uncertainty about the Middle East peace deal.
Market Data:
- Brent crude fell 0.65% to $79.33 per barrel.
- WTI crude fell 0.46% to $75.50 per barrel.
- Brent crude previously hit its lowest level since March 2.
- WTI crude previously hit its lowest level since March 4.
The Peace Agreement:
- The US and Iran signed a 14-point memorandum of understanding.
- Iran agreed to toll-free passage through the Strait of Hormuz for 60 days.
- The agreement aims to restore full traffic through the waterway within 30 days.
- The deal applies to allies in the Middle East and Lebanon.
- Iran's nuclear program remains an unresolved issue.
- The US must develop a $300 billion plan to support Iran's recovery.
Expert Projections:
- The Strait of Hormuz carries 20% of global oil flows.
- Goldman Sachs expects Gulf oil exports to reach pre-war levels by the end of July.
- Crude production may recover by October.
- Restoring exports requires a 13 million barrel-per-day increase in Hormuz flows.
- BNP Paribas expects $75 per barrel to act as a price floor.
- Pre-war Brent crude prices traded between $60 and $70 per barrel.
Global supply faced pressure since late February following US and Israeli strikes on Iran. Iran responded by restricting transit through the Strait of Hormuz.
Source: The Times of India