projected that oil and fuel prices would decline more rapidly than previously expected due to a potential agreement between the United States and Iran to bring an end to the conflict involving the two nations and ensure the safe passage of these energy sources through the Strait of Hormuz.
"Given recent developments, we now project a faster decline in oil prices," said BCR Governor Julio Velarde during the presentation of the June Inflation Report.
Last week, the U.S. and Iran announced their intention to continue talks aimed at ensuring the safe passage of commercial vessels through the Strait of Hormuz—a route used by ships transporting oil, gas, and other energy products.
Likewise, the previous day, the Foreign Ministries of Qatar and Pakistan revealed that the two countries had agreed on a roadmap to resolve the conflict within 60 days, boosting market optimism.
"What we have seen is a markedly different evolution in international prices after it was announced that a memorandum of understanding between Iran and the United States is being reached," the official said.
"Between June 11 and late June, when the United States attacked Iran, oil prices rose by nearly 37%. Hours after the announcement, they fell by 12.3%," Velarde mentioned.
"Brent crude, the benchmark oil from the North Sea, had risen by 24.7%, but it is now down 15%. The same applies to fuels in general. Gasoline prices are expected to continue declining in the coming months if this agreement holds, although it will take some time for them to return to their pre-conflict levels with Iran," he added.
The BCR chief also noted that the correction in fuel prices is good news, as it will in turn help lower inflation in Peru.
In the same vein, Velarde said fuel prices have recently begun to decline, a trend that is already being reflected in some transportation services, although he warned that fare adjustments in urban public transportation would take longer.