International oil prices fell sharply in early trading on Friday (June 12), stimulated by market expectations that the United States and Iran might sign a memorandum of understanding in the near future. They then traded in a narrow range before falling further by the close.
According to Xinhua News Agency, as of the close of trading on the 12th, the price of light sweet crude oil futures for July delivery on the New York Mercantile Exchange fell by $2.83 to settle at $84.88 per barrel (approximately S$109), a drop of 3.23%; the price of Brent crude oil futures for August delivery on the London ICE Futures Exchange fell by $3.05 to settle at $87.33 per barrel, a drop of 3.37%.
According to multiple US media reports, a senior US government official said on the 12th that the US was "80% to 85%" confident that it would sign a memorandum of understanding with Iran in the coming days. On the same day, Iranian Foreign Minister Araqchi disclosed parts of the draft memorandum of understanding between Iran and the US in a television program, covering ceasefire arrangements and shipping in the Strait of Hormuz.
Following the military strikes launched by the United States and Israel against Iran on February 28, shipping through the Strait of Hormuz was disrupted, leading to a significant reduction in international oil supply and causing fluctuations in international oil prices.
Source: [Lianhe Zaobao] (https://www.zaobao.com/news/world/story20260613-9200277)