📉 Global Oil Prices Slip 6% Amid US-Iran Peace Optimism • Overall Impact: Global crude oil prices tumbled ~6% on Monday to hit two-week lows. This comes as a potential relief to energy-dependent economies like Sri Lanka, which have faced severe pressure on foreign reserves due to high import bills and West Asian geopolitical tensions.

• Price Breakdowns: • Brent crude futures dropped by US$ 5.85 (or 5.7%) to US$ 97.69 a barrel. • U.S. West Texas Intermediate (WTI) decreased by US$ 5.75 (or 6.0%) to US$ 90.85 a barrel. • Both contracts recorded their lowest levels since May 7. • Key Market Drivers: • Optimism grew after the US announced a "largely negotiated" understanding to reopen the crucial Strait of Hormuz, which previously handled 20% of global oil and LNG shipments. • Analysts remain cautious as the two sides remain at odds over critical blockades, and a return to normal flow could take months due to damaged infrastructure. • Supply Side Indicators: U.S. energy firms increased oil and gas rigs for the fifth consecutive week to 558 rigs (up by 7) to capitalize on recent high prices. However, the total count remains 1% lower YoY.