The tension between America and Iran seems to be decreasing once again. The biggest proof of this is the two-week ceasefire announced by America. After which a big decline has been seen in the international crude oil market. The biggest impact is being seen on American crude oil. There has been a huge decline of 19 percent in its prices and the price has come down to $ 91 per barrel. Whereas a day earlier the price of American crude had crossed $116 per barrel. According to experts, crude oil prices may fall further. The US President has claimed that this ceasefire happened with the condition that Iran will open the Strait of Hormuz with immediate effect. Let us also tell you at what level the prices of crude oil are visible in the international market.
American crude oil crashes
The prices of American crude oil have completely crashed in the international market. Where the prices had crossed $116 per barrel. They are being seen at $91 per barrel. According to the data of international media report, the price of WTI crude fell by about 19 percent during the trading session to $ 91.11 per barrel. Whereas a day earlier the market had closed at $ 112.41 per barrel. This means that American oil prices have seen a fall of $ 21.3 per barrel. If we look at the peak of the day, then a decline of 22.50 percent i.e. $ 26.46 per barrel has been seen in the prices. American crude oil prices had reached a peak of 52 weeks at $ 117.57 per barrel.
Fall in oil prices of Gulf countries
On the other hand, a big decline is being seen in the oil prices of Gulf countries also. As the market opened on Wednesday, oil prices in Gulf countries fell below $100 per barrel and a decline of about 15 percent was seen. If we look at the data, the price of Brent crude oil has fallen by more than 15 percent during the trading session to $ 92.82 per barrel. This means that the crude oil of Gulf countries has fallen by about $ 18 per barrel compared to Tuesday. A day ago, the price of Brent crude was more than $ 109 per barrel. Which had reached close to $ 112 per barrel during the trading session.
declaration of ceasefire
Trump has announced on social media that if Iran opens the Strait of Hormuz with immediate effect, America will not launch any attack for two weeks. Earlier on Tuesday, he had said on social media that if his demands are not met, an entire civilization will be destroyed tonight. According to a statement by Foreign Minister Abbas Araqchi on Wednesday, Iran said that if the attacks on it stop, it will also stop its attacks. Also, with the coordination of the Iranian armed forces, safe movement through the Strait of Hormuz will be possible for two weeks. March saw the largest monthly increase in oil prices in history—more than 50%—due to ongoing tensions between the US and Israel over Iran.
Received 10-point proposal
Trump said that the US has received a 10-point proposal from Iran. He described the proposal as a ‘successful basis’ for talks and said both sides were very close to reaching a firm agreement for long-lasting peace. IG analyst Tony Sycamore wrote in a note that this is a good start and could pave the way for a permanent reopening of the Strait of Hormuz—but there are still a number of “ifs and buts” that remain to be resolved.