Oil prices continued to fall during Monday’s trading, after the announcement of a peace agreement between the United States and Iran. The agreement envisages, in the first instance, the resumption of navigation through the Strait of Hormuz, a strategic passage for the global transport of hydrocarbons.
Brent futures, the international benchmark for the oil market, fell about 4.6%, to stand at 83.25 dollars per barrel.
Meanwhile, U.S. crude futures declined by 5.1%, reaching 80.55 dollars per barrel.
This development reflects a clear retreat in concerns about potential disruptions to global oil supply. The prospect of resuming navigation through the Strait of Hormuz has indeed helped calm the markets, as this maritime route plays a central role in the transport of oil and gas from the Gulf region.
Investors had previously feared that an escalation of tensions between Washington and Tehran could trigger major disruptions to shipping and a sharp rise in energy prices.
The announcement of the agreement thus triggered a pullback in prices, as markets now priced in a reduced geopolitical risk in the region.
Upcoming sessions are expected to remain closely tied to the details of the agreement, its effective implementation, and the conditions for resuming maritime traffic through the Strait of Hormuz.
