Global crude oil prices tumble up to 5 pc on US-Iran deal
New Delhi, June 15
Global crude oil prices declined by nearly 5 per cent on Monday after the United States and Iran reached an agreement and announced the reopening of the Strait of Hormuz, easing concerns over disruptions to global energy supplies.
The international oil benchmark Brent crude fell as much as 4.90 per cent to $83.05 per barrel in early trade, while US West Texas Intermediate (WTI) crude plunged 5.74 per cent to around $80 per barrel.
According to market experts, Asian equities surged at the start of the week as progress towards a US-Iran peace deal boosted global risk appetite, while US futures also traded firmly higher.
"Meanwhile, Brent crude oil declined sharply by more than 4 per cent towards the $83-per-barrel mark, easing inflation concerns and providing additional support to market sentiment," they said.
US President Donald Trump announced on Truth Social that a deal with Iran had been completed. "The Deal with the Islamic Republic of Iran is now complete," according to him.
In addition, he declared the reopening of the Strait of Hormuz, a crucial maritime chokepoint through which roughly one-fifth of the world's crude oil supply passes.
"I hereby fully authorise the toll-free opening of the Strait of Hormuz and, simultaneously, the immediate removal of the United States naval blockade. Ships of the World, start your engines. Let the oil flow!" Trump wrote.
According to reports, the United States and Iran are expected to sign a memorandum of understanding in Switzerland on Friday.
The positive development lifted sentiment across global equity markets. Major Asian indices, including Japan's Nikkei, Hong Kong's Hang Seng, South Korea's KOSPI and Indonesia's Jakarta Composite, traded higher, with some markets gaining more than 5 per cent.
Back home, domestic equity benchmarks Sensex and Nifty also opened strongly, with both indices rising more than 1 per cent in early trade.
— IANS
Reader Comments
This is a major geopolitical win for global stability. The Strait of Hormuz is a choke point for nearly 20% of the world's oil supply. If there was a blockade, India would have been hit hard since we import over 80% of our crude. This deal might also cool inflation and help our stock markets for a while. Good for the Sensex rally today!
I'm cautiously optimistic. US-Iran agreements have a history of unravelling quickly. For now, Indian exporters and importers will breathe easier with lower transport costs. But let's not pop the champagne yet—global tensions never stay resolved for long. Watch out for the fine print in that MOU signing next week in Switzerland.
Yaay, our household budget will be happy! My husband drives 40 km to work every day, and we've been spending almost ₹8,000 per month on petrol. If prices come down by even ₹5 per litre, that's a big help. Just hope the oil marketing companies don't delay passing on the cuts. Also, India should accelerate renewable energy adoption—can't depend on Middle East politics forever.
As a small business owner who relies on logistics, this is music to my ears. Transport costs have been killing our margins. But I'm also thinking—why does India still have to beg for stable oil prices? We have the world's third-largest refinery capacity. Time to aggressively push ethanol blending, electric vehicles, and strategic petroleum reserves. Modi government should use this window to reduce our import dependence.
Interesting development, but I'm skeptical about Trump's 'deal with Iran' given his prior record with
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