(Photo: Reuters)
Stock market analysts and gold traders are bullish on the newly struck deal to end the three-month-long US-Iran war, pinning hopes on the Strait of Hormuz being opened on Friday to ease inflationary and cost pressures for the Thai economy and businesses.West Texas Intermediate (WTI) crude plunged 5% to US$80.52 per barrel by midday on Monday, while Brent dropped 4.5% to $83.40, as Middle East developments turned increasingly positive following an agreed US–Iran peace framework, with an official signing expected this Friday.
Both sides confirmed that the agreement would include an end to military clashes between the US and Iran, Israel and Lebanon, and the full reopening of the Strait of Hormuz, one of the world's most important energy transit routes.
The reopening of the Strait of Hormuz has eased concerns over energy supply disruptions, said Wikij Tirawannarat, senior vice-president of Bualuang Securities.
"Brent has declined to about $80 now from $120 at the start of the US–Iran war. Domestic retail oil prices are expected to fall soon, helping to lower costs for companies that have been pressured by elevated oil prices, such as paper and petrochemicals," said Mr Wikij.
