New Delhi (India), June 15: The Brent crude futures declined 4 per cent in early trading today, reacting to the announcement of the peace deal between the US and Iran.
After the announcement, the US West Texas Intermediate slid more than 4.6 per cent.
The US and Iran will sign a peace deal on June 19 (Friday), ending 107 days of war between the two countries.
Earlier today, US President on Truth Social wrote that America will end its naval blockade on Iranian ports.
Trump also announced that the Strait of Hormuz, which is a narrow waterway used to ferry one-fifth of the global oil supplies, will also be reopened.
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The Brent Crude oil prices have witnessed an extreme volatility since the beginning of the US-Iran war in the end of February. The Brent crude surged from around USD 72 a barrel to a peak of nearly USD 120 before retreating closer to USD 85 following recent de-escalation efforts.
American media reported from sources that the current framework does not directly address Iran's nuclear enrichment programme. Instead, both sides are expected to begin separate nuclear negotiations during a 60-day period following the signing of the agreement.
Several contentious issues remain unresolved. Iran is seeking access to a portion of its frozen overseas assets, estimated at around $100 billion, and has reportedly demanded that at least half of the funds be released immediately.
However, reports suggest Washington has not yet agreed to the proposal.
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The talks, which reportedly involved lengthy discussions with mediators including Qatar, have also focused on lifting restrictions affecting maritime traffic in the Strait of Hormuz.
While the United States is expected to ease certain measures impacting shipping, details regarding future transit charges and operational arrangements remain unclear pending the release of the final draft.
Ends.
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