Oil markets reacted sharply to the signing of the memorandum of understanding between the United States and Iran. On Thursday, crude prices fell by more than 3% in Asian trading, as investors welcomed a geopolitical détente that could secure global energy supplies.
Around 6:25 GMT, the price of West Texas Intermediate (WTI) crude oil was down 3,40% at $74,18 a barrel. Brent crude, the international benchmark, was also down, falling 3,02% to $77,15 a barrel. Traders believe the agreement significantly reduces the risk of disruption to maritime traffic in the Strait of Hormuz.
The Strait of Hormuz at the heart of concerns
The protocol signed by the American and Iranian authorities notably provides for the reopening of the Strait of Hormuz, a strategic waterway through which nearly a fifth of the world's oil consumption usually passes. The restrictions observed in recent months had contributed to fueling tensions in energy markets and driving up crude oil prices.
For investors, the prospect of a gradual return to normal in this strategic region reduces the risk of supply disruptions. Part of the price increase seen over the past several weeks was based on fears of a prolonged blockage of energy exports from the Gulf.
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