The United States and Iran reached a breakthrough agreement on June 14 to end the mutual blockade of the Strait of Hormuz, restore free passage for oil tankers and commercial vessels, and restart broader negotiations on Iran nuclear program. Under the deal, Washington will ease oil sanctions on a graduated basis linked to Iranian compliance, while Tehran commits to full reopening of the strategic chokepoint that carries roughly one-fifth of global oil and LNG supply. Brent crude fell more than 3% to near $84/barrel and WTI dropped near $81/barrel on the news. A formal memorandum of understanding is scheduled for signing on June 19. The deal, if implemented, would remove one of the largest single risk premiums from global shipping and energy markets, though significant uncertainty remains around Israeli opposition and the graduated sanctions relief timeline.
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