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Oil Prices Drop 6% Following Progress on US-Iran Negotiations
Global oil prices have fell 6 per cent after the United States (U.S.) and Iran progress toward a ceasefire, hoping that there could be permanent agreement on war. However, the disputes over the Strait of Hormuz and Iran’s nuclear program kept markets cautious.
According to Reuters report, the price of a barrel of oil fell by $5.85, representing a 5.7 per cent decrease, settling at $97.69.
The price of a barrel of West Texas Intermediate (WTI) crude dropped by 6 per cent, reaching $90.85 per barrel. This marks the lowest price for petroleum products since May 7.
The decline in prices followed an announcement by U.S. President Donald Trump, who stated that most points have already been agreed upon between two states.
The primary goals of the agreement lie on to end hostilities between the two nations and reopen the ports.
Despite this progress, some issues remain unresolved. On Sunday, May 24 President Trump remarked that he is in no rush to finalize the agreement with Iran.
Currently, both the nations are working on a deal that could permanently end the conflict. While neither side has officially released the full details of the agreement, both parties indicate that negotiations are in the advanced stages.
CNN reported that key points under negotiation include the reopening of the Strait of Hormuz and maintains control over its operations, demanding the U.S. should lift its naval blockade on Iranian ports.
Iran also demands the release of its frozen assets and funds held in international banks. While the U.S. wants Iran to abandon its nuclear weapons program.
