US-Iran deal stirs markets: Oil falls, gold rises

The conclusion of long-standing negotiations between the US and Iran with an agreement, and the announcement that the deal will be signed on June 19, showed its effect on energy markets in a short time. The reopening of the Strait of Hormuz to international maritime traffic, one of the prominent points of the agreement, led to a decrease in concerns regarding global energy supply.

With the expectation that shipments will return to normal in the Strait of Hormuz, through which a significant portion of world oil trade passes, investors took sell-side positions in the oil market.

DECLINE IN OIL PRICES

Following the news of the agreement, Brent crude fell by over 4 percent, dropping to the 83.6-84 dollar range. US West Texas Intermediate (WTI) crude retreated to the 80-81 dollar levels.

With this development, oil prices have fallen to their lowest levels seen since March. Market experts assess that if the agreement is implemented and energy flow continues uninterrupted, the downward movement in prices may continue.

NEW EXPECTATIONS FOR BRENT CRUDE

Analysts state that the normalization of oil flow through the Strait of Hormuz could ease the pressure on global supply.

Some financial institutions are sharing forecasts that Brent crude could retreat to the 80 dollar level later in the year.

RISE IN GOLD ATTRACTS ATTENTION

Despite the decline in oil, there was a rise in gold prices. As a result of investors turning to assets seen as safe havens due to the impact of geopolitical developments, the price of an ounce of gold rose above the 4,300 dollar level.

Domestically, gram gold approached the 6,400 lira threshold.

MARKETS FOCUS ON SIGNING DATE

While it was announced that the parties reached an agreement as a result of negotiations conducted with Pakistan's mediation, the official signatures are expected to be signed on June 19.

While US President Donald Trump described the agreement as a "great deal," the Iranian side states that the process serves as a starting point for more comprehensive negotiations.

News Source: 12punto