Global oil prices extended their decline after the United States and Iran signed a landmark peace agreement aimed at ending months of conflict that has fuelled instability across the Middle East and shaken global energy markets.
The memorandum of understanding, signed ahead of a formal ceremony scheduled for Friday in Switzerland, launches a 60-day negotiation process intended to secure a lasting settlement between the two countries.
The breakthrough follows months of hostilities triggered by US-Israeli strikes on Iran in February, a conflict that heightened regional tensions, disrupted oil supplies and sent energy prices soaring.
Markets responded positively to the diplomatic breakthrough, with oil prices falling further on expectations that easing tensions could stabilise crude supplies and reduce geopolitical risks in one of the world’s most strategic oil-producing regions.
If negotiations succeed, analysts say the agreement could mark a significant turning point for regional security and global energy markets, while easing pressure on economies that have grappled with elevated fuel costs since the conflict began.
