How global oil prices have been impacted following announcement of US-Iran deal; what are points of agreement between US and Iran
Global oil prices dropped during early trading in Asia following the announcement of an agreement between the US and Iran.
Meanwhile, US President Donald Trump stated that the Strait of Hormuz—a vital maritime route—would be reopened under this agreement.
Following this, the price of the global oil benchmark, Brent crude, fell by 3.8 percent to $84.02 per barrel, while US-traded oil dropped 4.1 percent to $81.40 per barrel.
Pakistan's Prime Minister Shehbaz Sharif announced that the agreement would be officially signed in Switzerland on Friday, June 19.
Subsequently, Trump wrote on social media, "The uninterrupted flow of oil in the region will resume."
The Strait of Hormuz had been effectively closed since shortly after the US and Israel launched airstrikes on Iran on February 28.
Normally, approximately 20 percent of the world's oil and liquefied natural gas (LNG) supplies pass through this maritime route.
Global energy markets have witnessed significant volatility in recent months. Before the war began, the price of Brent crude was around $70 per barrel, but during the conflict, it surged to nearly $120 per barrel.
14 points of agreement between the US and Iran
Meanwhile, Iranian state media has claimed knowledge of the 14 points of an agreement (MoU) between the US and Iran.
However, there has been no official confirmation of these points from either country so far.
According to Iran's semi-official news agency, Mehr News, the proposed points include the issue of a permanent ceasefire on all fronts, including Lebanon.
Additionally, the following points are mentioned:
A commitment by the US not to interfere in Iran's internal affairs
Lifting of the US naval blockade within 30 days
Withdrawal of US troops from Iranian territory
Reopening of the Strait of Hormuz within 30 days under the "Iranian system"
Plans by the US and its allies for Iran's reconstruction worth at least $300 billion
Lifting of sanctions on Iranian oil and energy products
Reiteration of Iran's commitment not to develop nuclear weapons
A commitment by the US not to increase its military presence in the region or impose new sanctions