Oil prices fell sharply in early Asian trade after Pakistan announced a potential deal between the US and Iran. President Donald Trump confirmed the deal would see the reopening of the Strait of Hormuz, a key shipping route for global energy.
The reopening of the Strait of Hormuz, a critical chokepoint for global energy supplies, could ease supply concerns and reduce volatility in oil prices, impacting inflation and economic growth worldwide.
Oil prices fell sharply in early Asian trade after Pakistan announced a potential deal between the United States and Iran. President Donald Trump confirmed the deal would see the reopening of the Strait of Hormuz, a key shipping route for global energy. Brent crude fell 3.8% to $84.02 a barrel, while US-traded oil was down 4.1% at $81.40. The Strait of Hormuz, through which approximately 20% of the world's oil and LNG normally passes, had been effectively closed since late February following US and Israeli airstrikes on Iran. Global energy markets have experienced significant volatility in recent months due to developments in the conflict.