Oil prices continue to fall after US-Iran deal

Tengrinews.kz – News of peace agreements between Washington and Tehran triggered an immediate reaction on global financial markets. Oil prices continue to fall, while stock indices have moved upward.

Prices for black gold plunged by more than 4 percent.

During trading, futures for North Sea Brent crude fell below $84 per barrel, while the U.S. WTI benchmark corrected to $81.

Meanwhile, Asia’s stock sector reacted to the geopolitical easing with rapid growth. Japan’s Nikkei index jumped by 3.5 percent, while South Korea’s KOSPI showed even stronger momentum, gaining more than 5 percent.

Drop in WTI prices

Analysts assess the long-term effect of the deal as moderately positive. On the one hand, cheaper oil could ease inflationary pressure, which has weighed on the global economy for a long time. On the other hand, an immediate surplus of raw materials should not be expected: experts warn that restoring previous supply volumes to the market will take some time.

Investors are assessing how soon the Middle East will be able to restore hydrocarbon exports and whether cargo vessels will begin returning to the region.

On Sunday, June 14, the United States and Iran concluded a peace agreement. The information was confirmed by U.S. President Donald Trump, Pakistani Prime Minister Shehbaz Sharif and Iranian Deputy Foreign Minister Kazem Gharibabadi. The official signing ceremony will take place on Friday, June 19, in Switzerland.