Oil prices closed at their lowest level since early March, following the announcement of an agreement between the US and Iran for the reopening of the Strait of Hormuz. The Strait of Hormuz, a vital sea channel, remains at the center of international developments. The strategic importance of the region for global energy security and navigation is constantly highlighted, making Hormuz a key player on the geopolitical chessboard. The development also positively affected the stock market, as the Dow Jones index recorded a new all-time high on Monday.
Brent, the international benchmark for oil, fell by 4.76% and closed at $83.17 per barrel. This price is the lowest close since March 4. WTI, the benchmark for US oil, fell 4.87% and closed at $80.75 per barrel, also the lowest level since March 4.
The US-Iran agreement and the de-escalation of oil prices triggered a positive reaction in the markets. The Dow gained 469 points, or 0.92%, closing at 51,671 points, surpassing the previous record high set on June 4.
The S&P 500 rose 1.65%, while the Nasdaq Composite, which includes many technology companies, gained 3.07%. The index recorded its best daily performance since March 31. The S&P and Nasdaq are now less than 1% and about 1.5%, respectively, from new all-time highs.
Despite the positive picture in the markets, uncertainty remains. The details of the US-Iran agreement, the procedural issues for the reopening of the Strait of Hormuz, and the course of the conflict in the Middle East continue to affect the sentiment.
Oil prices remain above pre-war levels. The yield on the 10-year US Treasury note, which is influenced by inflation expectations, is also above pre-war levels.
Source: CNN enikos.gr
