Global oil prices fell sharply on Sunday after the announcement of an agreement between the United States and Iran, easing market concerns over potential disruptions to energy supplies in the Middle East.
According to Reuters, Brent crude futures dropped 4% to $83.96 a barrel following the announcement of the agreement between Tehran and Washington. US crude futures also declined, touching a session low of $80.25 a barrel.
The decline came as traders reacted positively to signs of reduced tensions between the two countries, which had raised fears of supply disruptions and instability in the region in recent weeks.
Oil prices had surged earlier amid concerns over military escalation and the security of key shipping routes, including the Strait of Hormuz, through which a significant portion of the world’s oil supply passes.
Markets are now closely watching developments surrounding the proposed agreement and its potential impact on regional stability and global energy supplies. (Newswire)
