International crude oil prices declined sharply after a peace agreement between the United States and Iran eased geopolitical tensions in the Middle East. The development has reduced fears of supply disruptions, leading to a broad sell-off in global energy markets.

Brent crude futures fell by 3.1 percent to USD 74.76 per barrel, marking the first time prices have dropped below USD 75 since regional tensions escalated. Meanwhile, West Texas Intermediate (WTI) crude declined by nearly 3 percent to USD 71.04 per barrel.

Market analysts attribute the decline to improving stability around the Strait of Hormuz, one of the world’s most important oil shipping routes. Following the agreement reached on June 17, oil tanker traffic through the region has reportedly returned to normal levels, easing concerns about global supply constraints.

Brent crude prices have now fallen to their lowest level since late February, while WTI has reached its weakest point since early March. The sharp decline reflects growing confidence among investors that major disruptions to global oil supply are becoming less likely.

Economists believe lower oil prices could help reduce inflationary pressures worldwide, particularly in energy-importing nations. If diplomatic relations continue to improve and regional stability is maintained, crude oil prices may remain under pressure in the coming months.