Brent Crude Plunges 35% from April Peaks on US-Iran Deal Prospects

Societe Generale strategist Kenneth Broux highlighted a sharp decline in Brent crude oil prices. The drop follows a US-Iran memorandum of understanding (MoU) and renewed expectations for reopening the Strait of Hormuz, a key chokepoint for global oil shipments.

Brent prices have fallen approximately 35% from their April 2024 peaks. Despite the steep correction, the commodity is still trading above the levels seen before the escalation of the Russia-Ukraine conflict.

The report notes that the combination of the MoU and potential easing of Hormuz tensions has removed a significant risk premium from oil markets. Key support levels are now being watched by traders.