Oil slides below $87 on hopes of US-Iran peace deal

Crude oil prices tumbled to their lowest level in nearly two months on Friday as optimism over a potential US-Iran peace agreement eased fears of supply disruptions in the Middle East. WTI July futures fell 1.74% to $86.19 per barrel, while MCX June crude futures declined 1.26% to ₹8,224. On the economic front, US producer inflation accelerated to 6.5% in May, its highest level since November 2022, adding to expectations that the Federal Reserve could raise interest rates later this year. Meanwhile, OPEC reported a 177,000 barrel-per-day decline in May output, led by a sharp drop in Iranian production. However, higher output from Saudi Arabia, the UAE, and Iraq helped offset the decline, further weighing on oil prices.

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