Oil prices slipped 2% reaching their lowest levels in three months as optimism over reopening of the key chokepoint- Strait of Hormuz. Reports of the signing of a peace agreement between the US and Iran have driven market sentiment. Additionally, weaker physical demand also weighed on sentiment.
Several market observers and key brokerage houses like Goldman Sachs see Crude prices sliding to pre-war levels by the end of 2026.
Brent crude futures were down 2.4% trading near the $81 per barrel mark,while the US contract for oil- West Texas Intermediate (WTI) was down 2.6% quoted around the $78 per barrel level. US President Donald Trump has said that the waterway passage, which transits nearly 20% of the global energy flows would be “completely open” on Friday, June 19.
