Trump Announces Iran Deal to Reopen Strait of Hormuz, Shocks Global Oil Markets
President Trump declared that the U.S. and Iran had reached a deal to reopen the Strait of Hormuz, a critical oil shipping route. Crude oil prices plummeted as markets reacted to the announcement, with Brent crude falling 3.9% to $84 a barrel and U.S. crude dropping 4.8% to $81 a barrel. The Strait had been effectively closed since late February due to regional tensions.
Where Sources Diverge
The npr article mentions the announcement of the deal and its effect on oil prices, while the times-of-india article provides specific price drops and mentions the ongoing closure of the Strait of Hormuz since late February.
Crude oil futures dropped after Trump promises an Iran deal will be signed Friday.
Oil prices plunge as Trump announces Iran deal complete; Brent falls to $84 a barrel.
Timelines
Sources
The price of crude oil dropped shortly after President Trump announced that the U.S. and Iran have agreed to a deal that, when signed Friday, would reopen the Strait of Hormuz.
Oil prices had already fallen quite dramatically on Thursday and Friday, in anticipation of an imminent deal. President Trump has posted online that the Strait of Hormuz will reopen after the deal is signed on Friday.
Brent crude dropped 3.9 per cent to $84 a barrel, while US crude fell 4.8 per cent to around $81 a barrel. The decline added to losses recorded on Friday, when Brent slipped 3.4 per cent and US crude shed 3.2 per cent. The Strait of Hormuz, through which a significant share of the world's oil shipments pass, has effectively remained closed since the conflict erupted in late February. According to an Iranian lawmaker, some commercial vessels had been paying an average of about $2 million to transit the waterway.