New Delhi: Global crude oil prices declined by nearly 5 per cent on Monday after the United States and Iran reached an agreement and announced the reopening of the Strait of Hormuz, easing concerns over disruptions to global energy supplies.
The international oil benchmark Brent crude fell as much as 4.90 per cent to $83.05 per barrel in early trade, while US West Texas Intermediate (WTI) crude plunged 5.74 per cent to around $80 per barrel.
According to market experts, Asian equities surged at the start of the week as progress towards a US-Iran peace deal boosted global risk appetite, while US futures also traded firmly higher.
“Meanwhile, Brent crude oil declined sharply by more than 4 per cent towards the $83-per-barrel mark, easing inflation concerns and providing additional support to market sentiment,” they said.
US President Donald Trump announced on Truth Social that a deal with Iran had been completed. “The Deal with the Islamic Republic of Iran is now complete,” according to him.
In addition, he declared the reopening of the Strait of Hormuz, a crucial maritime chokepoint through which roughly one-fifth of the world’s crude oil supply passes.
“I hereby fully authorise the toll-free opening of the Strait of Hormuz and, simultaneously, the immediate removal of the United States naval blockade. Ships of the World, start your engines. Let the oil flow!” Trump wrote.
According to reports, the United States and Iran are expected to sign a memorandum of understanding in Switzerland on Friday.
The positive development lifted sentiment across global equity markets. Major Asian indices, including Japan’s Nikkei, Hong Kong’s Hang Seng, South Korea’s KOSPI and Indonesia’s Jakarta Composite, traded higher, with some markets gaining more than 5 per cent.
Back home, domestic equity benchmarks Sensex and Nifty also opened strongly, with both indices rising more than 1 per cent in early trade.
(IANS)
