Oil prices fall on news of an Iran peace agreement to 88 dollars per barrel
WTI and Brent fell on Friday on news of a proposed peace agreement between the United States and Iran, sending oil prices down to around 88 dollars per barrel. Reports raised the possibility that the agreement could reopen the Strait of Hormuz and lift oil sanctions on Iran.
Global crude oil futures prices fell on Friday. U.S. benchmark West Texas Intermediate (WTI) and international benchmark Brent both declined, with oil prices falling to around 88 dollars per barrel.
Iranian state media reported that a proposed peace agreement between the United States and Iran would reopen the Strait of Hormuz. The same report said the agreement could potentially lift oil sanctions on Iran.
Some sources said an agreement could be reached by the end of this weekend. Reports mentioned that the agreement could come soon.
However, reports said that opposition to the agreement had emerged in Tehran. The reports also covered the possibility of such a backlash.
The market was reported to have immediately priced in the possibility of the route reopening and potential sanctions relief. Reports continued to say that news of the reopening of the Strait of Hormuz had eased supply concerns.
The report also noted that the news could trigger additional volatility depending on crude oil supply and whether sanctions are lifted. Further announcements related to the agreement could affect prices.
Sources: CNBC Top News,MarketWatch Top Stories
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