Oil prices fell in Asian markets on Monday after the announcement of a framework agreement between the United States and Iran, which is expected to lead to the reopening of the Strait of Hormuz, one of the most important routes for global oil transport.
According to a statement by Pakistani Prime Minister Shehbaz Sharif, his country has mediated the agreement, while the official signing ceremony is expected to take place on June 19 in Switzerland.
Following this development, Brent crude fell by 4.8%, trading at $83.18 per barrel, while US crude (WTI) lost 5.6% of its value, falling to $80.13 per barrel.
Iranian Deputy Foreign Minister Kazem Gharibabadi also confirmed that the agreement with the US has been finalized, while US President Donald Trump reacted on social media with the message: "Let the oil flow!".
However, analysts warn that the lack of details on the content of the agreement could keep markets in uncertainty in the coming days. According to Vandana Hari, of Vanda Insights, investors will wait for further clarifications to assess the real impact of the agreement on the global energy market.
The Strait of Hormuz was closed after the escalation of the conflict between the US, Israel and Iran, while about 20% of the world's oil and liquefied natural gas trade passes through it.
