US-Iran Peace Deal Causes Crude Oil Prices to Drop

Crude oil prices experienced a significant decline of five percent on Monday, with West Texas Intermediate approaching $83.30 per barrel, following the announcement of a peace deal between the United States and Iran. This agreement, confirmed during a ceremony in Switzerland on June 19, aims to end a three-month conflict and will reopen the vital Strait of Hormuz, through which approximately 20 percent of the world's crude oil supply transits.

The deal was announced by both sides and is expected to lead to a final agreement within two months. US President Donald Trump expressed support for the deal on social media, while Iran's Deputy Foreign Minister Kazem Gharibabadi stated that the agreement would immediately end hostilities.

The market reacted positively, with global equities rising as concerns over inflation eased, allowing central banks to maintain lower interest rates. The deal's viability will depend on the details of the negotiations and adherence to the terms.