Oil prices have plummeted and markets rose after the US and Iran declared they had signed a framework deal to end the war that US President Donald Trump predicted would see the reopening of the critical Strait of Hormuz shipping route.
Brent crude, the international oil benchmark, fell 4.7% to $83.24 (£61.94) a barrel. Shares in Asia and Europe surged on the back of the deal. Pakistan, which has been mediating for ending the US-Iran war, announced an official signing ceremony would be conducted on Friday, 19 June in Switzerland.
Iran’s deputy foreign minister Kazem Gharibabadi stated on state TV in a phone call that a deal with the US had been finalised, while Trump commented on social media “let the oil flow!”. But Vandana Hari, from energy markets monitoring firm Vanda Insights, said the lack of specificity about what has been agreed was “likely to bring unease and uncertainty into the market”.
It might be a week of indecision and volatility for the oil market, she noted. On 28 February, the US and Israel conducted airstrikes in Iran . Shortly afterwards, the Strait of Hormuz was effectively blocked .
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