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Wed, 29 Jul 2026
02:02:03 am
Wed, 29 Jul 2026
02:02:03 am
Rudransh Sangwan
Published at: June 13, 2026, 11:34 AM
Synopsis
Crude oil prices plunged more than 3% on June 13, 2026, after reports suggested the United States and Iran are nearing a potential peace agreement that could ease tensions in the Middle East. Brent crude slipped close to $87 per barrel, while WTI crude dropped below $85, as investors anticipated a possible reopening of the Strait of Hormuz and normalization of global oil supplies.
Global crude oil markets witnessed sharp selling pressure on Friday after reports indicated that the United States and Iran may be close to signing an agreement to halt hostilities in the Gulf region.
The prospect of a diplomatic breakthrough significantly reduced concerns over supply disruptions, causing both Brent and WTI crude benchmarks to fall to their lowest levels since April.
Market participants are closely monitoring developments as any agreement could potentially reopen one of the world's most critical energy shipping routes and improve global crude supply visibility.
| Benchmark | Price | Change |
|---|---|---|
| Brent Crude | $87.04/barrel | -3.7% |
| WTI Crude | $84.60/barrel | -3.55% |
| Brent Intraday Fall | More than $3/barrel | |
| WTI Intraday Fall | More than $3/barrel |
Both benchmarks touched their lowest levels in nearly two months as traders priced in a potential easing of geopolitical risks.
The primary driver behind the decline is growing optimism surrounding a possible diplomatic agreement between Washington and Tehran.
Reports suggest a memorandum aimed at ending hostilities could be signed as early as this weekend.
A successful agreement could significantly reduce geopolitical tensions that have supported oil prices in recent months.
The Strait of Hormuz remains one of the world's most important energy corridors.
The route normally handles nearly:
Any progress toward reopening the waterway would improve supply confidence across global markets.
Oil prices had surged earlier due to fears of prolonged disruption in the Gulf region.
As the probability of a ceasefire increases, traders are removing part of the geopolitical premium embedded in crude prices.
The latest outlook from OPEC showed softer demand growth projections for 2026, adding further pressure on oil prices.
The Strait of Hormuz remains the center of global energy market attention.
| Metric | Value |
|---|---|
| Global Oil Flow Through Strait | ~20% |
| Strategic Importance | Extremely High |
| Current Status | Severely Restricted |
| Market Impact | Major Driver of Oil Prices |
Although Iran recently announced restrictions on vessel movement through the route, US military sources have indicated that some commercial shipping activity continues.
A full reopening would likely reduce supply concerns and support lower energy prices globally.
Several global institutions continue to monitor the evolving situation.
Analysts believe market direction over the next several weeks will largely depend on whether crude exports through the Gulf region normalize.
Adding to the bearish sentiment, OPEC lowered its forecast for global oil demand growth in 2026.
| Year | Demand Growth Forecast |
|---|---|
| 2026 | 970,000 barrels/day |
| Previous Forecast | 1.17 million barrels/day |
| 2027 | 1.73 million barrels/day |
The downward revision reflects concerns regarding global economic growth and energy consumption trends.
Goldman Sachs also updated its long-term outlook.
| Metric | Forecast |
|---|---|
| 2027 Average Brent Price | $80/barrel |
| Near-Term View | Volatile |
| Key Risk | Middle East Supply Disruptions |
Despite lowering its long-term forecast, the investment bank noted that geopolitical risks could continue to create temporary price spikes.
India imports more than 85% of its crude oil requirements, making global oil prices extremely important for the domestic economy.
A sustained decline in crude prices could ease inflationary pressures and support economic growth.
| Indicator | Value |
|---|---|
| Brent Crude | $87.04/barrel |
| WTI Crude | $84.60/barrel |
| Daily Fall in Brent | 3.7% |
| Daily Fall in WTI | 3.55% |
| Strait of Hormuz Share of Global Oil Flow | ~20% |
| OPEC 2026 Demand Growth Forecast | 970,000 bpd |
| Goldman Sachs 2027 Brent Forecast | $80/barrel |
The sharp decline in crude oil prices highlights how sensitive energy markets remain to geopolitical developments. The possibility of a US-Iran peace agreement and a potential reopening of the Strait of Hormuz have significantly reduced immediate supply concerns, pushing Brent and WTI crude to their lowest levels in nearly two months.
However, uncertainty remains high. Any delays in negotiations, shipping disruptions, or renewed geopolitical tensions could quickly reverse the recent decline. For now, markets appear focused on diplomacy rather than conflict, creating near-term downside pressure on crude oil prices.
Oil prices fell after reports suggested the United States and Iran are nearing a peace agreement that could reduce supply disruption risks.
Brent crude was trading near $87.04 per barrel.
WTI crude was trading near $84.60 per barrel.
The Strait of Hormuz handles approximately 20% of global oil shipments, making it one of the world's most critical energy routes.
OPEC now expects global oil demand to grow by 970,000 barrels per day in 2026.
Lower crude oil prices can help reduce fuel inflation, lower import costs, and improve India's trade balance.
Financial journalist specializing in market analysis, stock research, and investment trends. Dedicated to providing accurate, timely insights for informed decision-making.
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