Oil falls 4% after US-Iran reach peace accord

Global oil prices fell sharply in early Asia trade on Monday (15/6) after Pakistan announced that the United States and Iran had reached an agreement to end a conflict that has lasted more than three months. Brent crude, the global benchmark, dropped about 4% to around $84 a barrel, while the US benchmark fell to about $81.40. Pakistan Prime Minister Shehbaz Sharif said the two sides agreed to halt military operations immediately and permanently across all fronts, including Lebanon. Sharif also said the formal signing of the memorandum of understanding is scheduled for Friday, June 19, in Geneva, Switzerland. After the news emerged, energy markets reacted quickly as the risk of supply disruptions from the Middle East eased.