Global oil prices fell sharply on Friday, June 12, to levels not seen since early March following President Donald Trump's claim that he is close to a peace deal with Iran. The price of Brent crude dropped from about $93 a barrel in overnight trade and briefly traded below $85 per barrel on Friday morning.
Key Takeaways
Global oil prices fell sharply on Friday following President Trump's claim of progress toward a peace deal with Iran. Brent crude dropped below $85 per barrel briefly before settling around $88.55 at 0410 GMT. The potential reopening of the Strait of Hormuz eased supply concerns, driving market reaction.
- Oil prices fell sharply on Friday following Trump's claim of progress toward a peace deal with Iran
- Brent crude dropped below $85 per barrel briefly before settling around $88.55 at 0410 GMT
- Potential reopening of the Strait of Hormuz eased supply concerns, driving market reaction
- Iranian news agency reports Tehran has not approved any agreement text
- U.S. Energy Information Administration warns of low oil stockpiles in major economies
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▼Source Claims Check
1 Difference FoundAll 10 publishers report consistent facts across 2 key claims. 1 point of difference noted.
| Claim | Status | Reason | |
|---|---|---|---|
| Strait Of Hormuz Reopening | 1 Difference | Majority reports potential reopening; Fars says no deal approved | ▼ |
| Oil Price Drop | Broad Agreement | Brent crude fell to $88.55, WTI to $86.11 | |
| Oil Stockpiles | Broad Agreement | OECD inventories to fall below 2.3 billion barrels by December |
Strait Of Hormuz Reopening
▼Majority reports potential reopening; Fars says no deal approved
Oil Price Drop
Broad AgreementBrent crude fell to $88.55, WTI to $86.11
Oil Stockpiles
Broad AgreementOECD inventories to fall below 2.3 billion barrels by December
This analysis is AI-generated and may not perfectly represent each source's reporting. Always read the original articles for full context.
According to Reuters, Brent futures fell by $1.83 or 2% to $88.55 per barrel at 0410 GMT, while U.S. West Texas Intermediate (WTI) crude dropped by $1.60, or 1.8%, to $86.11.
Trump called off planned military strikes against Iran late on Thursday, June 11, citing progress in talks with Tehran. The potential deal could reopen the Strait of Hormuz as soon as this weekend, easing supply concerns and driving the market reaction. Tamas Varga from PVMOilAssociates noted that 'Headlines are driving the market once again, as confidence grows that an eventual deal will be struck and the strait reopens.'
However, Iran's semi-official Fars news agency reported that Tehran had not approved the text of any agreement. The U.S. Energy Information Administration (EIA) warned on Tuesday that oil stockpiles in the world's largest economies are heading towards levels not seen since at least 2003.
Total oil inventories in OECD countries are expected to fall to just under 2.3 billion barrels by December, according to the EIA. Despite this, traders and shippers have noted that lost Gulf oil exports due to the Iran conflict were far smaller than initially thought. Shipping data firm Kpler estimated that some 136 million barrels of non-Iranian crude had moved through Hormuz and the Gulf of Oman export channels between early April and June 10, amounting to about 1.9 million barrels per day.
According to Reuters, initial estimates suggested a loss of around 14 million barrels per day from Gulf supply, but this figure could be closer to 5-6 million barrels per day as producers found ways to keep cargoes moving. External factors such as increased U.S. oil exports and a record international emergency stocks release have also contributed to cooling the oil market. Despite these adaptations, global oil stocks are dwindling, increasing the risk of renewed price spikes.
How this summary was created
This summary synthesizes reporting from 10 independent publishers using AI. All sources are cited and linked below. NewsBalance is a news aggregator and media literacy tool, not a news publisher. AI-generated content may contain errors or inaccuracies — always verify important information with the original sources.