Oil prices fell below $75 after a deal between the US and Iran
After the signing of a peace agreement between the US and Iran, the price of crude oil on international markets fell below the $75 per barrel mark. This is the lowest level since early March, amid a 38% price drop since April.
According to Trading Economics, the main reason for the price decline lies in the signing of a memorandum of understanding between the US and Iran regarding the cessation of the war in the Middle East. Subsequently, the first ships began to leave the Persian Gulf through the Strait of Hormuz, leading to an increase in oil supply on the market.
In March, oil prices began to rise sharply due to the active phase of the war in the Middle East, reaching peak values of over $110 per barrel. However, the conclusion of the agreement was a signal to investors about the reduction of geopolitical risks and the possible increase in production. This, in turn, allowed prices to return to levels close to the beginning of the year.
Experts believe that the fall in oil prices could have a positive impact on the energy and industrial sectors of the economy and also help reduce inflationary pressures in many countries. However, much will depend on the further actions of the players in the oil market, particularly the decisions of OPEC and other leading producers.
| Date | Oil Price ($) |
|---|---|
| March 2023 | More than 110 |
| June 16, 2023 | Less than 80 |
| June 18, 2023 | Less than 75 |
