Oil prices tumbled below the $90 per barrel mark on Friday on hopes of a deal to restore global crude flows after signs of easing tensions in the Middle East. US President Donald Trump said Washington had reached a framework agreement with Iran and that the “war has ended today.”
Around 7 am IST, WTI Crude stood at 86.73, down 0.98 or 1.12%, while Brent Crude was at 89.45, down 0.93 or 1.03%.
Speaking during a tele-rally in support of Georgia lieutenant governor Burt Jones, who is contesting the state’s gubernatorial election, Trump declared, “I don’t know if you heard, but we ended the war with Iran today.”
The US president further said that he expects an agreement to be signed “over the next few days,” repeating claims he has made several times during the conflict. He also said the Strait of Hormuz would reopen once a deal is finalised.
Trump, who had earlier threatened to hit Iran “very hard,” called off planned strikes on Thursday, saying discussions with Iran had progressed. However, Iran’s semi-official Fars news agency reported that Tehran had not approved the text of any agreement.
This comes after tensions intensified earlier this week. On Wednesday, Iran announced the closure of the Strait of Hormuz, warning that any vessel attempting to pass through would come under fire.
Tehran’s months-long blockade of the strait, which normally carries a fifth of global oil and liquefied natural gas shipments, had kept oil prices elevated.
The US military said on social media that commercial ships continued to transit the waterway.
The Middle East crisis has continued to keep global crude markets on edge, with prices previously remaining above the $100 per barrel mark compared with pre-conflict levels of $70 per barrel.
The conflict, which began on February 28 with joint US and Israeli strikes on Iran, has continued to disrupt energy sentiment globally. Iran’s tightening of its control over the Strait of Hormuz, a route carrying around 20% of the world’s fuel, has sent ripples across economies worldwide.
Source: TOI
--Agencies
