Washington: US President Donald Trump has said global oil prices could witness a sharp decline if a proposed agreement with Iran is successfully concluded.
Speaking at the White House, Trump said financial markets have responded positively to expectations of a possible deal, with investors showing confidence over the development.
He said a potential agreement could bring greater stability to the Middle East and help restore smoother movement of energy supplies through key shipping routes, including the Strait of Hormuz.
Trump added that the proposed deal also includes measures to ensure that Iran does not acquire nuclear weapons. He said discussions are in the final stage and an agreement could be reached soon.
The Strait of Hormuz, one of the world’s most important oil transit routes, plays a crucial role in global energy markets. Any disruption in the region has a direct impact on crude oil prices worldwide.
A fall in international crude prices could provide relief to oil-importing countries such as India by helping reduce fuel costs, inflationary pressure and overall economic burden.
