U.S.-Iran Peace Accord Floods Market with 60M Barrels, Oil Prices Fall Amid Supply Glut Concerns

According to Jin10, following the U.S.-Iran peace accord signed in mid-June, oil prices declined globally as over 60 million barrels of Iranian crude that had been trapped due to conflict entered the market in the weeks after the agreement. The reopening of the Strait of Hormuz has triggered immediate supply pressures, with market sentiment turning bearish. Analysts from Morgan Stanley and Goldman Sachs this week warned of the risk of oversupply as early as next year, a stark reversal from just months earlier when crude benchmarks hit all-time highs amid concerns over inventory depletion caused by Iran tensions.
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