Oil prices are on a downward trajectory during Thursday morning trading (June 18), following the signing of a digital peace agreement between the United States and Iran, marking the end of a military conflict that lasted over 108 days. During the hostilities, international energy markets came under intense pressure, with oil prices surging as high as $120 per barrel amid concerns over supply security and regional stability.
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However, the easing of geopolitical tensions has already begun to reflect in the markets, with Brent crude falling today to near $78 per barrel, approaching the levels that prevailed before the conflict erupted.
Specifically, Brent crude futures are recording a decline of more than 1.5%, sliding to their lowest levels since early March. At the same time, WTI (West Texas Intermediate) crude futures are down around 2%, trading near $75 per barrel.
Market attention and investor focus are now turning to the implementation of the agreement — and most critically, to the reopening of the Strait of Hormuz.
It is worth noting that the International Energy Agency (IEA) has warned of a potential supply surplus, forecasting that global oil supply will increase by 8 million barrels per day by 2027, compared to demand growth of just 2 million barrels per day.
