Oil Prices Plunge to Lowest Levels Since Early March After Trump Signs Iran Deal
The selloff reflects easing supply fears as the deal is expected to reopen the Strait of Hormuz and reduce tanker disruptions, traders said.
- On Monday, oil prices fell to their lowest levels since early March after President Donald Trump signed a memorandum of understanding with Iran to end the conflict, with West Texas Intermediate crude dropping over 5% to trade just above $80.
- The conflict previously disrupted oil shipped via the Strait of Hormuz, spiking prices to above $119 at a four-year high, but WTI's war premium has since declined to about 13.4% following hopes for an Iran solution.
- Jim Cramer predicted on Tuesday that U.S. oil could drop below $70 within one month, noting that producers "pumping like mad" created a supply surge faster than many investors expected.
- Federal Reserve Chairman Kevin Warsh is presiding over his first meeting this week, where a continued drop in oil prices strengthens the case that inflation is cooling, reducing pressure for rate hikes.
- BMO's U.S. rates strategist Vail Hartman cautioned that the "oil shock is not over" and the market has not reached the point to revive hopes for interest rate cuts this year without more concrete macro changes.
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34 Articles
Brent oil, the reference crude oil in Europe, falls below $80 after the agreement between the United States and Iran and the gradual reopening of the Strait of Ormuz, the key maritime route for the trade in 'black gold' and liquefied natural gas. The raw material has been cheaper about 5% in the London futures market, listed in the 79 dollar environment, and accumulates a drop close to 10% in the little we get during the week.This decline brings…
Drops Widen on News of U.S. Easing Sanctions on Iranian Oil Correspondent Lee Ji-heon = As optimism persists following the conclusion of peace talks between the United States and Iran, international oil prices continued their sharp decline on the 16th (local time), hitting their lowest level in over three months. On this day, I
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