LONDON (Dunya News) - Global crude oil prices recorded a significant decline following reports of progress towards a ceasefire and a possible agreement between Iran and the United States, easing concerns over disruptions to global energy supplies.
According to international media reports, news of a consensus on a memorandum of understanding (MoU) between Iran and the US pushed Brent crude prices to their lowest levels in more than three months.
Brent crude futures fell by $2.02, or 2.4 per cent, to trade at $81.15 per barrel. During trading, prices briefly dropped to $80.89 per barrel, marking the lowest level since March 4.
Meanwhile, West Texas Intermediate (WTI) crude declined by $2.22, or 2.8 per cent, to $78.53 per barrel. It also touched an intraday low of $78.27 per barrel, its weakest level since March 10.
Market analysts attributed the sharp decline to expectations that shipping activity through the Strait of Hormuz could soon return to normal, reducing fears of supply disruptions.
The Strait of Hormuz is one of the world's most important maritime routes, carrying a significant share of global oil exports. Any escalation or easing of tensions in the region typically has a direct impact on international energy markets.
Analysts believe that if progress towards an Iran–US agreement continues and maritime traffic through the Strait of Hormuz remains uninterrupted, concerns about oil supplies could ease further, potentially keeping downward pressure on crude prices in the coming weeks.