Trump Declares "Deal Complete"... Oil Prices Plunge More Than 4%

[Financial News, New York = Reporter Lee Byung-chul] International oil prices tumbled after U.S. President Donald Trump formally declared that peace talks with Iran had been concluded.
President Donald Trump said on Truth Social on the 14th local time that "The Deal with the Islamic Republic of Iran is now complete."
He added, "The Strait of Hormuz will be reopened without tolls, and the United States will immediately end its maritime blockade on Iran," and said, "All ships around the world, start your engines. Let the oil flow again."
Oil prices fell sharply immediately after President Trump's remarks.
As of 6:01 p.m. Eastern Time, WTI futures were down 4.8% at $80.80 per barrel. Brent Crude Oil futures, the global benchmark, also fell 3.9% to $83.89 per barrel.
Markets expect that if the reopening of the Strait of Hormuz becomes a reality, supply of Middle Eastern crude will normalize and the geopolitical risk premium will quickly narrow.
Shehbaz Sharif, the Prime Minister of Pakistan, who has been mediating talks between the United States and Iran, said the two sides had agreed to halt military operations on all fronts. In a social media post that day, Sharif said, "The United States and Iran have declared the immediate and permanent end of military operations on all fronts, including Lebanon."
He added, "The United States and Iran are scheduled to formally sign a peace agreement in Switzerland on the 19th," and explained that "mediating countries will hold technical consultations and preparatory meetings for the signing ceremony this week." Sharif has played a key mediating role in the latest U.S.-Iran negotiations.
He said, "I thank both the United States and Iran for working toward a diplomatic resolution to the conflict," and added, "I hope peace in the Middle East can be restored through diplomacy."



pride@fnnews.com Reporter Lee Byung-chul Reporter