Oil prices are significantly falling due to expectations of peace in the Middle East.
Global oil prices have sharply decreased, falling below the $80 per barrel mark for the first time since early March. This decline is associated with optimistic forecasts regarding the swift resolution of the conflict in the Middle East.
On Tuesday, June 16, the price of August futures for Brent crude on the London ICE Futures exchange fell by $3.32, decreasing by 3.99% to $79.859 per barrel. July futures for WTI on the NYMEX exchange dropped by $3.86, or 4.78%, to $76.89 per barrel. Over the past week, the cost of major oil benchmarks has decreased by approximately 10%.
Analysts believe that this price trend is caused by expectations of the conflict’s resolution in the Middle East. The US and Iran have reached a peace agreement, the official signing of which is planned for June 19 in Switzerland. Pakistan’s Prime Minister Shahbaz Sharif confirmed this information. US President Donald Trump also announced the movement of his ships through the Strait of Hormuz, and Iran reported that their vessels are now freely passing through the US maritime blockade zone.
The anticipated signing of the peace agreement could significantly change the balance of power in the international oil market. Experts note that the stabilization of the situation in the Middle East could lead to an increase in oil supplies, which would create additional pressure on prices.
| Date | Brent Mark ($/barrel) | WTI Mark ($/barrel) |
| June 16 | 79.859 | 76.89 |
| Weekly decrease | -10% | -10% |
