WTI trades below mid-$78.00s, down nearly 8% for the day amid Iran peace deal hopes
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – struggles to register any meaningful recovery and sticks to heavy intraday losses through the early part of the European session on Monday.
West Texas Intermediate crude oil price tumbles nearly 8% on Monday, trading below the mid-$78.00 range. The decline comes after US President Donald Trump announced that Middle East allies had reached a deal on Iran's nuclear program, leading to hopes of a resolution to the five-month-long war and the reopening of the Strait of Hormuz.
The Organization of the Petroleum Exporting Countries (OPEC+) also announced on Sunday a production quota increase of around 188,000 barrels per day from September, marking the end of voluntary output cuts introduced in 2023. Despite this optimistic news, traders remain cautious and wait for further developments in the Middle East situation before making significant bets on crude oil prices.
Analysts at Danske Bank expect the market impact of the increased production to be limited due to export disruptions from the Iran and Ukraine wars.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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