Oil crashes as US-Iran peace breakthrough calms supply fears

Crude oil prices nosedived more than 5% on Monday, plunging under $80 per barrel and hitting a two-month low after the United States and Iran struck a preliminary peace agreement, raising expectations that the crucial Strait of Hormuz could reopen by the end of the week. The breakthrough triggered a wave of optimism across global markets, with investors unwinding geopolitical risk premiums that had fueled oil's recent rally. Asian equities surged, while Japanese stocks scaled fresh record highs as sentiment improved dramatically. Beyond geopolitics, market participants are gearing up for a pivotal week of central bank meetings. Interest rate decisions from the Bank of Japan, Reserve Bank of Australia, and the US Federal Reserve are expected to shape the next leg of market direction, with investors looking for fresh signals on growth, inflation, and monetary policy. Mirroring the global selloff, MCX June crude oil futures sank nearly 6% to Rs 7,589 per barrel as easing Middle East tensions and improving supply prospects weighed heavily on energy markets.

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