Oil and gas prices plummeted after a ceasefire agreement in the Middle East
Oil and gas prices plummeted this Wednesday after the announcement of a two-week ceasefire between the United States and Iran, which...
TL;DR
- Oil and gas prices plummeted following a two-week ceasefire announcement between the US and Iran.
- The ceasefire generated hopes for the reopening of the Strait of Hormuz, a crucial oil transit route.
- Brent crude fell 13.29% to $94.75 per barrel, and WTI dropped 16.41% to $94.41 per barrel.
- European gas benchmark TTF futures declined 14.92% to 45.30 euros ($52.7).
- If reopened, 10-13 million barrels of oil per day could be gradually released.
- Significant uncertainty remains regarding geopolitical risk reduction in the Middle East.
- Few ships transited the Strait of Hormuz on Wednesday despite the reopening announcement.
- Logistical delays and infrastructure damage are expected to keep prices above $80, even with a permanent ceasefire.