Global oil prices fell sharply on hopes that a US-Iran peace agreement could resolve the worst energy supply disruption in market history. Brent crude dropped below $84 a barrel at the start of trading in Asia-Pacific centers, reflecting optimism that the Strait of Hormuz may soon reopen and restore Gulf oil exports. Analysts questioned how durable the accord will prove, given many unresolved issues. An expert on Middle East politics noted that the pause in hostilities is likely short-lived because core disputes remain untouched. The deal did not address Iran’s nuclear ambitions, its regional proxies, missile development or human rights record. Every justification offered by the US administration for the conflict was left unaddressed, leaving the same flashpoints that could trigger renewed fighting. Leaders in France, Qatar, Britain, Turkey, Japan and Australia issued statements. Qatar backed all initiatives to strengthen regional security. Turkey’s president urged restraint to prevent escalation before the formal signing. France called for immediate reopening of the Strait of Hormuz and offered support alongside Britain. Britain’s prime minister insisted on toll-free navigation and repeated that Iran must never obtain a nuclear weapon. Australia urged continued restraint and engagement while stressing the need to resolve nuclear concerns. Markets reacted positively to the news. The Strait of Hormuz, through which about 20 percent of global crude passes, had been closed after strikes began on 28 February. The US president authorized reopening the waterway and lifting the naval blockade. Crude prices fell as much as 5 percent, with West Texas Intermediate nearing $80. Asian equities rose, led by gains above 5 percent in Tokyo and Seoul. The tentative agreement was announced more than three months after the initial strikes. An initial memorandum is expected to be signed in Geneva on Friday, though many details, including the nuclear program and Hormuz access, still require clarification.
