Oil drops, dollar weakens and gold rises after U.S.-Iran peace accord

London/Washington, June 15 (SANA) Global financial and commodity markets reacted strongly on Monday after the United States and Iran announced a peace accord and the reopening of the Strait of Hormuz, a key global energy shipping route, easing concerns over disruptions to oil supplies and maritime trade.

Oil prices fell more than 4%, the U.S. dollar weakened against major currencies and gold prices rose as investors adjusted positions following the announcement.

Brent crude futures dropped $3.51, or 4.02%, to $83.82 a barrel, while U.S. West Texas Intermediate crude fell $3.93, or 4.63%, to $80.95 a barrel, according to Reuters.

The decline came after Pakistani Prime Minister Shehbaz Sharif announced on Sunday that Washington and Tehran had reached a peace agreement, a development that raised expectations of improved stability in the Gulf region and reduced the perceived risk of disruptions to global energy supplies.

The Strait of Hormuz, one of the world’s most strategically important waterways, carries roughly one-fifth of global oil consumption and serves as a critical route for energy exports from the Gulf.