Oil & Gas

Oil prices fell by more than 1% on Thursday, reaching their lowest level since the Iran war began. The drop came after the United States and Iran signed a temporary agreement aimed at ending the conflict, reopening the Strait of Hormuz, and easing sanctions on Iran. Brent crude fell to $78.53 per barrel, while U.S. crude dropped to $75.31 per barrel.

The agreement has improved expectations for global oil supplies because it could allow more Iranian oil to enter the market. It also guarantees free passage through the Strait of Hormuz, a key route for global oil shipments, and aims to restore normal shipping activity within 30 days.

The deal starts a 60-day negotiation period and includes plans to support Iran’s recovery after the war. Although important issues such as Iran’s nuclear program still need to be discussed, the agreement has reduced concerns about disruptions to oil supplies.

Analysts believe oil exports and production in the Gulf region will gradually recover in the coming months. However, they do not expect oil prices to fall back to pre-war levels soon, as global demand remains strong and some supply risks still exist.