A big relief news is coming for the global economy and energy market. To end the ongoing war between America and Iran, both countries have agreed on a draft peace agreement. Under this agreement, the American economic blockade on Iran will be ended and the world’s most important maritime oil route ‘Strait of Hormuz’ will be reopened.
US President Donald Trump and Pakistan Prime Minister Shahbaz Sharif, who is playing the role of mediator in this peace talks, have confirmed this agreement. As soon as this news came, a huge fall in the prices of crude oil has been recorded in the international market, which has raised hopes of cheaper fuel in the coming days. This peace agreement will be officially signed in Switzerland on coming Friday.
Huge fall in crude oil prices
As soon as the peace agreement was officially announced, there was an immediate slowdown in the global oil market. The price of international standard Brent crude fell by nearly 4 percent to $ 84 per barrel, while American West Texas Intermediate (WTI) fell by more than 4.6 percent and reached $ 80 per barrel.
President Donald Trump announced on social media that he has ordered an end to the US blockade of Iranian ports with immediate effect. Along with this, the movement of commercial ships and oil tankers will resume through the Strait of Hormuz from next Friday. The closure of this important sea route deepened the energy crisis across the world and pressure on inflation was increasing due to disruption of oil supply. Now, with the restoration of supply, there is a possibility of relief in fuel prices globally.
On what terms was the matter made?
According to media reports, under this initial agreement, America has agreed to restore Iran’s frozen funds worth $25 billion. In return, Iran has agreed not to develop nuclear weapons and to limit its existing uranium enrichment program. Iran’s Deputy Foreign Minister Kazem Gharibabadi clarified that during this 60-day ceasefire, both sides will negotiate a more detailed agreement, which will include the complete removal of economic sanctions and a final decision on the future of Iran’s nuclear program. According to the Prime Minister of Pakistan, this agreement includes a provision to immediately and permanently stop military operations on all fronts including Lebanon.
