48 minutes ago
Peter Hoskins Business reporter
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Oil prices have fallen after Pakistan, which has been mediating an end to the US-Iran war, announced a framework deal that President Donald Trump said would see the reopening of the key Strait of Hormuz shipping route.
Brent crude, the global oil benchmark, was 4.3% lower at $83.55 (£62.10) a barrel on Monday, while US-traded oil was down by 4.9% at $80.74.
Pakistan's prime minister Shehbaz Sharif said an official signing ceremony would be held on Friday, 19 June in Switzerland.
Iran's Deputy Foreign Minister Kazem Gharibabadi confirmed in a phone call on state TV that a deal with the US had been finalised, while Trump posted on social media "let the oil flow!".
But Vandana Hari from energy markets analysis firm Vanda Insights said a lack of detail on what has been agreed "is likely to inject unease and uncertainty into the market."
This could mean a week of uncertainty and volatility for the oil market, she added.
The Strait of Hormuz has been effectively closed since shortly after the US and Israel launched airstrikes on Iran on 28 February.
After the conflict began, Tehran threatened to attack vessels using the crucial waterway, through which around 20% of the world's oil and liquefied natural gas (LNG) normally passes.
Global energy markets have been on a wild ride in recent months, with prices often rising or falling sharply in response to developments in the US-Israel war with Iran.
Brent crude, which was trading at around $70 a barrel before the conflict started, peaked at about $120 during the war.
Energy market experts have also warned that the movement of oil through the strait is unlikely to immediately return to pre-war levels.
Andrew Lipow from consulting company Lipow Oil Associates said mines would first need to cleared from the waterway, which could take from a few weeks to up to six months.
He also said there is a large backlog of tankers waiting to use the waterway and that restarting oil production and getting the loading of ships back to normal levels could take weeks.
Admiral Mark Montgomery, a retired US Navy rear admiral and senior fellow at the Foundation for the Defence of Democracies, told the BBC's Today programme that getting back to normal would not be "an overnight thing".
"I would say that's going to take a month or 45 days to kind of fully get till you're at a normal pumping balance, and vessels moving in and out smoothly," he said.
Asian stock markets rose on Monday as investors welcomed the framework deal.
Japan's Nikkei 225 share index was 4.7% higher, while the Kospi in South Korea was up by more than 5.2%.
The region was hit particularly hard by higher energy prices as it is heavily reliant on the Middle East for its oil and LNG supplies.
Read the full article at BBC News (World) →📄Source document: Anonymous Lebanese official
4 reports
Financial TimesParty-aligned🔒Center2 days agoA US official stated that Israel and Hizbollah have agreed to a ceasefire. The article also mentions that oil prices fell due to hopes that this agreement might strengthen the US-Iran nuclear deal.
Bias read (Center): The article reports a factual statement from a US official regarding a ceasefire between Israel and Hizbollah, without apparent bias in language or emphasis. It also notes an economic effect (oil prices falling) linked to expectations about the US-Iran deal, which is presented neutrally.
Middle East EyeIndependentCenter6 days agoLebanon was not informed of the details or timing of a newly announced US-Iran agreement, according to an anonymous official source. Hezbollah has not commented on the deal, though it did not launch any new attacks against Israel on Monday. Lebanese Parliament Speaker Nabih Berri, a close ally of Hezbollah, praised the agreement, expressing gratitude to both the U.S. and Iran for including a clause aimed at stopping Israeli aggression against Lebanon.
Bias read (Center): The article presents facts without overtly biased language or selective sourcing. It reports on an official statement regarding lack of communication with Lebanon, notes Hezbollah’s silence, and includes a quote from a Lebanese politician who supports the agreement. The tone remains neutral, with no
Official sources cited
- government Anonymous Lebanese official
- government Lebanese Parliament Speaker Nabih Berri
BBC News (World)State / PublicCenter6 days agoOil prices fell following the announcement of a framework deal between the US and Iran, mediated by Pakistan, which aims to reopen the Strait of Hormuz. The deal, set to be signed in Switzerland, has led to a drop in both Brent crude and US-traded oil prices. However, analysts warn that the lack of specific details about the agreement may lead to market uncertainty.
Bias read (Center): The article presents the event factually without overtly favoring any side. It includes quotes from multiple sources, including officials from both the US and Iran, as well as an independent analyst. There is no clear ideological framing or biased language.
Official sources cited
- government Pakistan's Prime Minister Shehbaz Sharif
- government Iran's Deputy Foreign Minister Kazem Gharibabadi
- government President Donald Trump
- organisation Vandana Hari, Vanda Insights
Financial TimesParty-aligned🔒Center10 days ago US launches fresh wave of strikes on IranThe United States has conducted a new series of airstrikes against Iran, marking the second day of attacks and putting pressure on an already fragile ceasefire. The escalation has led to increased tensions in the region and contributed to rising oil prices.
Bias read (Center): The article reports on military actions without overtly favoring any side, presenting the situation as a development affecting regional stability and economic factors like oil prices. It does not employ loaded language or selectively present information to support a particular viewpoint.
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