Global oil prices drop further after US-Iran deal

Global oil prices declined further on Thursday following the signing of a memorandum of understanding between the United States and Iran, raising hopes of reduced tensions in the region and the reopening of key shipping routes.
 
The latest drop came after a week of declining prices driven by growing expectations of an agreement between the two countries. Although oil prices posted a slight increase on Wednesday, the overall trend remained downward.

Market sentiment improved after reports that the understanding includes measures aimed at ending hostilities and reopening the strategically important Strait of Hormuz, a major route for global energy shipments.

The easing of geopolitical concerns has had an immediate impact on international energy markets.

Benchmark Brent crude, which traded at around $86.80 per barrel at the beginning of the week, fell to approximately $74.80 per barrel on Thursday, reflecting a sharp decline amid expectations of improved oil supply flows and reduced market uncertainty.

TZ