WTI futures drop 5.53% to 91.26 while ICE Brent futures fall 8.05% to 95.21. The decline follows optimism that a US-Iran agreement to end the Middle East war is nearing completion. Reported terms include reopening the Strait of Hormuz, lifting economic sanctions, and lifting restrictions on Iranian assets and funds. The agreement also aims to end the war with Iran and the war between Lebanon and Israel. Nuclear elements rely on Iran’s verbal commitments about the scope of concessions regarding enrichment suspension and nuclear material, without clear binding commitments. The terms omit missile, drone, and regional support issues, prompting criticism and raising concerns the deal could be fragile and lead to renewed oil price increases.
"Light Crude Oil Futures (WTI) dropping sharply by 5.53%, falling to a current price of 91.26, while ICE Brent Futures are experiencing an even steeper decline, shedding 8.05% to trade at a current price of 95.21. The decline in oil prices comes amid hope that a deal to end the war in the Middle East between the United States and Iran is nearing completion."
"Axios reported, citing officials, on the details of the agreement being negotiated, which include reopening the Strait of Hormuz, lifting economic sanctions, and lifting restrictions on Iranian assets and funds. In addition, the agreement stipulates ending the war with Iran as well as ending the war between Lebanon and Israel."
"As for the nuclear program, under this agreement, Iran has given a "verbal commitments about the scope of the concessions it's willing to make on suspending enrichment and giving up the nuclear material", according to Axios. In other words, the current agreement, which is causing optimism and has led to lower oil prices, is nothing more than negotiations over negotiations for a future nuclear deal."
"Furthermore, the details revealed by Axios do not address the missile program, drones, or support for external groups in the region at all. We have previously mentioned that any agreement that does not clearly stipulate the dismantling of Iran's nuclear program, its ballistic missile program, or even its drone program will be pointless."
Read at London Business News | Londonlovesbusiness.com
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