US President Donald Trump claimed that the agreement to end the Iran war is ‘almost final’. The final details are still being worked out between the two countries. This agreement is being finalized after talks with the leaders of Gulf countries and the Israeli Prime Minister. Trump said that the Strait of Hormuz would be reopened under the agreement. This is the same sea route through which about one-fifth of the world’s total oil supply passes. After this news, crude oil prices may fall on Monday. Trump spoke to leaders of many countries from the Oval Office. President Trump made a joint call from the Oval Office. In this he talked to the leaders of Muslim countries. Iran does not trust America, said – let’s change the stance. On one hand, while the Pakistani delegation is in Tehran to reduce the differences, on the other hand, Iran has expressed doubt on the credibility of the Trump administration. Iranian Foreign Ministry spokesman Ismail Bakai said, “We can say that we are both very far and very close to an agreement. We have the past experience of the American side, which contradicts its own words and changes its stance. We cannot be completely sure that their attitude will not change again.” The situation is not clear on controversial issues like nuclear program. Trump has made many claims in the past about ending the war, but this time too it is not clear whether any solution has been found to Iran’s nuclear program or not. The war started on 28th February, ceasefire took place in April. This dispute in the Middle East increased when America and Israel together carried out major air strikes on Iran on 28th February. In response, Iran also attacked American bases in Israel and Gulf countries. After this, in the beginning of April, both the countries agreed to a ceasefire and since then peace talks have been going on behind the scenes. The price of crude oil may fall due to the opening of the Strait of Hormuz. Due to this war, the Strait of Hormuz was closed by Iran. This sea route is like a lifeline for the world, because about one fifth (20%) of the total oil supply globally passes through this route. With the hope of reopening of this route, signs of softening in crude oil markets have started appearing. When the war started on February 28, crude oil was hovering around $70 per barrel. By March-April the prices increased to $120 per barrel. Then after the announcement of ceasefire, the prices fluctuated and came below $100. Currently Brent crude oil is around $103 per barrel.
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Crude oil can become cheaper: Trump claims – Agreement to end Iran war almost final, talked to leaders of Muslim countries
