São Paulo – The United States and Iran said on Monday (15) that they had reached an agreement to halt the conflict in the Middle East. In response to the announcement, prices for Brent crude, the global benchmark, fell 4.7%. The commodity was trading at USD 82.50 per barrel on the London Stock Exchange. WTI, the U.S. benchmark crude, was down 4.93%, trading at USD 79.96 per barrel on Monday morning.
In a post on social media, U.S. President Donald Trump said: “The deal with the Islamic Republic of Iran is now complete.”
Negotiations, however, are continuing. Israel, a U.S. ally in the conflict, has refused to withdraw from Lebanon and continues its attacks on the country. The withdrawal is one of Iran’s conditions for ending the conflict and reopening the Strait of Hormuz. Trump said that oil tankers have already begun moving out of the Strait of Hormuz. Major stock markets reacted positively to the announcement and opened the day higher.
According to reports from AFP, Iraq, Lebanon, Saudi Arabia and Egypt welcomed the announcement, which has yet to be formally signed. The agreement is expected to be officially signed in Switzerland on Friday (19).
The conflict began on February 28, when the U.S. and Israel attacked Iran, and has since escalated. Israel invaded Lebanon, while Arab countries in the Middle East became targets of retaliatory Iranian attacks. In addition, the Strait of Hormuz—through which roughly 20% of the world’s oil and gas supplies pass—was closed, disrupting supply chains and driving up the prices of oil and other commodities.
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Translated by Guilherme Miranda
