[Flash] Oil Prices Slide as US-Iran Peace Deal Hopes Reduce Supply Risk Premium
International oil prices fell sharply on Monday as progress in US-Iran peace negotiations reduced geopolitical risk premiums, BBC and Al Jazeera reported. Markets anticipate that a deal would significantly lower the risk of shipping disruptions in the Strait of Hormuz.
For weeks, fears of blocked passage through the strait had kept oil prices elevated. Traders are now repricing that risk. Analysts note that oil could face further downside pressure if the agreement is formally signed. Asian equities rose on the back of lower energy costs.
Source: BBC World, Al Jazeera, CoinDesk