Oil Prices Drop on Iran’s Side Exports Arrangement
Crude oil prices fell in the global commodity market on Wednesday as Iran entered into a side agreement to boost export flows.
The slight decline in oil prices was driven by an agreement between Iraq’s Kurdistan Regional Government (KRG) and Baghdad to resume oil exports through Türkiye’s Ceyhan port, easing concerns over tight supply.
International benchmark Brent crude traded at $101.60 per barrel, down 1.8% from the previous close of $103.42. US benchmark West Texas Intermediate (WTI) fell 2.7% to $92.78 per barrel, compared with $95.53 in the previous session.
In a statement released Tuesday, the KRG said it had reached an agreement with the federal government to resume exports.
KRG Prime Minister Masrour Barzani said on social media platform X that oil flows through the pipeline would resume “as soon as possible,” citing “the extraordinary circumstances facing the country and the shared responsibility to overcome this difficult period.”
The development eased concerns over supply disruptions caused by the US-Israel conflict with Iran. However, Brent crude remained above $100 per barrel, as the war entered its third week with little sign of de-escalation.
Markets remain cautious ahead of the US Federal Reserve’s interest rate decision due later in the day. Investors are closely monitoring potential signals from the bank amid concerns that rising oil prices linked to the Iran conflict could fuel persistent inflation.
Data indicating a rise in US oil inventories also supported the decline in prices. The American Petroleum Institute (API) estimated that US crude stocks increased by 6.6 million barrels last week, against market expectations for a draw of 600,000 barrels. Zambia Growth Revised Downward as Fiscal Pressures Emerge
