Oil prices tumbled again on Thursday after US President Donald Trump and Iranian President Masoud Pezeshkian signed a deal to end their war and reopen the Strait of Hormuz, a crucial waterway for global energy supplies.
Brent crude fell 1.4 per cent to $78.42 per barrel, while West Texas Intermediate dropped 1.7 per cent to $75.47, extending losses that have seen both contracts plummet more than 15 per cent since last week.
The deal, signed at the Palace of Versailles following the G7 summit, sees Iran immediately reopen Hormuz—through which a fifth of world oil normally passes—while the US lifts its naval blockade and waives oil sanctions. Tehran also agreed to dilute enriched uranium under IAEA supervision as part of a broader nuclear negotiation.
Pakistan Prime Minister Shehbaz Sharif, who mediated the agreement, confirmed it entered force immediately. A $300 billion reconstruction fund will be facilitated once a final nuclear agreement is reached.
However, market optimism was tempered by the Federal Reserve’s signal that interest rate hikes may come before year-end. New Fed Chair Kevin Warsh acknowledged “persistently high prices are a burden for the American people,” shifting emphasis toward inflation control rather than employment.
Analyst Stephen Innes at SPI Asset Management noted the signed MoU should “pull some of the panic premium out of crude,” as markets had feared blocked Gulf flows would create an “energy cliff.”
Asian equities were mixed, with Tokyo and Seoul rising while Hong Kong and Shanghai fell.
All rights reserved ©2026 CDA News Nigeria.
Contact: info@cdanews.ng | 348 Ikwerre Road, Port Harcourt, Rivers State
