- There was a sharp decline in crude oil prices.
- Trump announced the Iran deal and the opening of the Strait of Hormuz.
- Possibility of reduction in prices of diesel, petrol and LPG.
Amid rising fuel prices due to tensions in West Asia, some good news emerged on Monday morning. Following this, diesel, petrol, and LPG prices may see a decline in the coming days. Oil prices fell sharply on Sunday. Brent crude fell 3.9 per cent to USD 84 per barrel, while US crude fell 4.8 per cent to around USD 81 per barrel.
This decline came after Trump announced that the agreement between Iran and the United States has been completed and the Strait of Hormuz will now be opened without toll.
Trump wrote, "The agreement with the Islamic Republic of Iran is now complete. I hereby fully authorise the opening of the Strait of Hormuz without any fees. I also order the immediate lifting of the US Naval blockade. Ships around the world, start your engines. Let the oil flow!"
Hormuz: A Vital Route For World Trade
The Strait of Hormuz, through which much of the world's oil shipments pass, has been closed since the conflict began in late February. According to an Iranian lawmaker, some commercial vessels used to pay an average of about USD 2 million to pass through the waterway.
Experts had warned that continued blockage in the strait could push oil prices into the mid- to high USD 100s and gasoline prices in the US to record levels.
This is why the entire world was seeking a quick agreement, which was finally achieved today. Crude oil prices plummeted as soon as Trump announced the deal was complete.
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US-Iran Agreement To Be Signed On June 19
Trump's announcement came hours before a UFC event at the White House to mark his 80th birthday. The development followed days of diplomatic efforts by several mediators, including Pakistan.
Prime Minister Shahbaz Sharif said the peace deal was reached after intense negotiations between Washington and Tehran. Sharif said both sides agreed to an immediate and permanent halt to military action everywhere, including Lebanon, and the agreement will be formally signed in Switzerland on June 19.