Freedom: Brent May Remain in the $80-$90 Per Barrel Range Following US-Iran Deal

Oil prices continue to decline on expectations of a normalization of the situation in the Middle East. According to Freedom analyst Natalia Milchakova, the signing of the memorandum between the US and Iran could lead to increased supply on the global market and maintain pressure on Brent prices in the coming weeks.

On Tuesday, the price of Brent crude oil on London's ICE Exchange fell 3.7% to $80.13 per barrel. Investors are speculating on the prospect of a peace agreement between the US and Iran, expected to take place on June 19.

The main consequence of the deal could be the resumption of full shipping through the Strait of Hormuz, one of the most important oil supply routes in the world. According to preliminary data, the strait could be unblocked within 30 days of the signing of the agreement.

However, according to the analyst, the potential for price declines is not unlimited. Military action has damaged the oil production and transport infrastructure of several Persian Gulf countries, and its restoration will require time and additional investment.

This could limit the speed at which export volumes return to the market and partially offset the negative impact of the de-escalation of the conflict.

Freedom believes that Brent crude will likely trade in the $80–$90 per barrel range until the end of June, with further price movements dependent on the pace of supply restoration and the implementation of the future agreement between the US and Iran.

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