The transaction session 27/5, the price of raw WTI oil and Brent dropped over 5% on a turn of 88,6 and 94,2 dollars per barrel. Opening the morning window 28/5, the price of both of them re-upped 2%, up to 90 dollars and 96 dollars.
The market came down yesterday by expecting Iran to restore traffic through the Hormuz Channel. Reuters earlier quoted information from Iranian national television said Tehran had in hand the original draft, not officially about a framework for memorandum with the US.
According to this agreement, Iran restored commercial transport operations through the Hormuz Channel within a month. In return, the U.S. withdrew military forces from nearby Iran and lifted the blockade with these water ports. Iran plans to coordinate with Oman to manage naval operations across the Hormuz Channel.
Even so, Iranian state television said that the framework was not yet completed. Tehran also emphasizes not taking any steps without the "specific identity".
- Mohammad turns American crude oil prices WTI over the past year. Graph: Trading Economics*
On the gold market, the world price also dropped sharply. Each of the gold-locked ounces of 27/5 lost 51 dollars, about $4,455 a ounce. In the session, the price had the time to drop 93 dollars to $4,413 - the lowest since the end of March.
The Hormuz Sea Channel has been locked down for the past three months due to Middle East conflict, which interrupted 20% of the crude oil supply and liquid gas (LNG) globally. This gave Brent oil prices a time to exceed $120, which increased inflation pressure.
The world's gold prices thus came under pressure throughout the war, as inflation accelerated, causing central banks to hesitate to reduce interest rates. Despite being a risk-defence tool in times of inflation and economic movement—police, precious metals suffer disadvantages in high-risk environments, due to no fixed interest.
State Thu * (in CNC)