Oil prices extend decline after US–Iran deal eases supply fears

Global crude oil prices fell further on Thursday (June 18) after the United States and Iran signed a preliminary peace agreement aimed at easing tensions and reducing the risk of supply disruptions.

Brent crude dropped 1.9 per cent in early Asian trading. At 0430 GMT, August delivery Brent was priced at $78.07 per barrel.

Prices briefly climbed above $81 on Wednesday following remarks by US President Donald Trump warning of possible renewed military action against Iran, before reversing after the deal was announced.

Despite recent declines, oil remains about 7 per cent higher than pre-conflict levels.

The easing of geopolitical tensions also supported Asian stock markets, with Japan’s Nikkei 225 rising more than 2 per cent and South Korea’s KOSPI gaining over 1.7 per cent, both hitting record highs. Taiwan’s TAIEX also rose by up to 1.3 per cent, while Hong Kong’s Hang Seng Index fell 1.7 per cent.

Market sentiment improved on expectations of reduced risk in key shipping routes, including the Strait of Hormuz, though shipping firms continue to flag security concerns.

Source: Al Jazeera