Oil prices drop over 4% after Pakistan announces US-Iran peace deal

Global crude oil prices registered a sharp decline as major benchmarks fell by more than 4 percent after the US and Iran reached a peace agreement to end the conflict. West Texas Intermediate (WTI) crude dropped to $80.76 per barrel, reflecting a decrease of 4.12 points, or 4.85%. Brent crude also fell, slipping to $83.52 per barrel after losing 3.81 points, or 4.36%. Similarly, Murban crude recorded a decline, falling to $83.02 per barrel. It decreased by 4.23 points, marking a drop of 4.85%. The United States and Iran have reached a peace deal as both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon. Pakistan Prime Minister Shehbaz Sharif announced the development on social media platform X, stating: “Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED”. The premier said the official signing ceremony will be on Friday, 19 June in Switzerland. “We would like to thank the United States of America and the Islamic Republic of Iran for their commitment to finding a diplomatic solution to the conflict. We would also like to extend our sincere appreciation to our brothers in this mediation effort, the great leadership of State of Qatar, for their support in reaching this agreement. I would also especially thank the visionary leadership of Kingdom of Saudi Arabia and Republic of Türkiye for their immense contributions in this regard,” he wrote. With the agreement now in place, mediators will facilitate a series of meetings this week. These pre-implementation discussions will lay the foundation for the technical talks and the official signing ceremony, PM Shehbaz said.