Oil prices plummet as Trump claims he is close to US-Iran deal
Summary
Oil prices dropped sharply after President Donald Trump said he was close to making a deal with Iran that could reopen the Strait of Hormuz, an important route for oil shipments. This news raised hopes for increased oil flow, causing prices to fall to their lowest levels since early March.Key Facts
- Brent crude oil price fell from about $93 to below $85 a barrel after President Trump postponed planned military strikes on Iran.
- The potential US-Iran deal could reopen the Strait of Hormuz for oil trade as early as this weekend.
- Iran has not made a final decision yet, but many parts of the deal have been agreed upon.
- Oil prices peaked at $113 a barrel in March after Iran blocked shipments following US-Israeli strikes.
- An emergency release of 400 million barrels of crude was coordinated to calm high prices earlier this year.
- Recent price drops are also due to lower oil imports by China and undisclosed oil exports from the Gulf.
- Goldman Sachs expects oil to average $90 a barrel in the last quarter of this year but lowered its 2027 price outlook to $80 due to higher supplies and weaker demand.
- European stock markets fell, influenced by movements in Asia and changes in oil prices.
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