The historic peace agreement for which the whole world was waiting has finally happened. President Trump announced that a peace deal has been agreed between the US and Iran. After this announcement by Trump, there has been a sharp decline in the prices of crude oil in the international market. Donald Trump has also announced the immediate opening of the Strait of Hormuz while confirming the peace agreement with Iran, after which oil traders made heavy selling.
With Trump’s announcement of peace agreement with Iran and immediate opening of Hormuz, a huge fall in the prices of crude oil was recorded in the international market. Brent crude fell more than 3.5 percent to $83.48 a barrel on Monday, while US West Texas Intermediate (WTI) crude fell nearly 5 percent to $80.61 a barrel.
Trump announced opening of Hormuz
Giving information about the peace deal with Iran, Trump posted on his Truth social, “The deal with the Islamic Republic of Iran is now complete. Congratulations everyone! I give full approval to open the Strait of Hormuz without any charges and also order the immediate lifting of the US naval blockade. Ships around the world, start your engines. Let the oil begin to flow!”
Heavy fall in crude oil prices
Let us tell you that after the war between America and Israel with Iran that started in late February, there was a huge jump in the prices of crude oil. Before the war, Brent crude was trading around $70 per barrel, at one point reaching $120 per barrel. Due to increasing tension in West Asia, the world’s most important sea route, the Strait of Hormuz, was closed. About 20 percent of the world’s crude oil passes through this strait.
Now the announcement of the reopening of the Strait of Hormuz has raised hopes for the global supply chain to return to normal. Asian countries will find it easier to resume oil imports from the Gulf region. According to experts, the biggest reason for the fall in oil prices is the opening of the Strait of Hormuz. Apart from this, in the same month OPEC had also announced to increase the production quota from July, which has indicated increase in supply in the market.
For a long time, crude oil prices remained at a high level of $ 100-115 per barrel, due to which the prices of petrol, diesel and LPG and other petroleum products are also continuously increasing across the world. Prices had fallen below $90 per barrel for the past few days, but the news of the peace agreement and the opening of the strait has accelerated the fall. Now there is hope among the people of India that the prices of petrol, diesel and LPG will fall in the coming days.