Following the successful conclusion of high-level diplomatic talks between the United States and Iran in Switzerland, global crude oil prices saw a significant decline on Monday (June 22).
Long-standing concerns about a major oil shortage in the global market have largely abated after Iran confirmed the lifting of international sanctions on its oil and petrochemical exports.
According to the latest market data, Brent crude oil prices fell by $1.53, or 1.90 percent, per barrel, reaching $79.04. Earlier today, during the initial trading session, its price had climbed to a high of $82.30.
Market volatility had been primarily triggered earlier by US President Donald Trump’s threat to restart war against Iran at the outset of the talks, coupled with Tehran’s sudden announcement of re-closing the strategically important Strait of Hormuz.
Meanwhile, the price of America’s West Texas Intermediate (WTI) crude oil fell by just 7 cents per barrel to $76.53 before today’s contract expiration. However, prices for the more actively traded August futures contract declined by 55 cents, settling at $75.30 per barrel. It is worth noting that due to a public holiday, there was no official settlement of oil prices in the US energy market last Friday.
Representatives of the mediating countries reported that high-ranking officials from the United States and Iran concluded their first round of crucial bilateral discussions today, Monday, at Switzerland’s Bürgenstock Resort. This dialogue commenced last Sunday, as per the terms of a memorandum of understanding signed between the two nations last week, with the primary objective of extending the temporary ceasefire, which has been in place since April, for at least another 60 days.
Source: Reuters.
