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Singapore Shares Open Higher on Biggest Oil Price Drop in Six Years

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Singapore shares opened higher on Wednesday as investor sentiment was lifted, owing to the biggest quarterly decline in oil prices in six years on Tuesday, as a U.S.-Iran ceasefire and increased shipping via the Strait of Hormuz led global crude prices to decline over 20% in June.

The Straits Times Index (STI), a key benchmark for the Singapore Exchange, rose nearly 0.31%, or 16.14 points, to open at 5,186.790. The gains were in line with a few other Asian markets, namely Japan, Taiwan, and Malaysia, which were trading higher in Wednesday morning trade.

Brent crude fell 0.3% to settle at $72.92 a barrel on Tuesday, losing nearly 21% in June and slashing 38% in the second quarter, its biggest quarterly decline since the first quarter of 2020. U.S. benchmark WTI crude dropped 1.8% to $69.50 a barrel, losing 20% for the month and 31% for the quarter, also indicating its steepest quarterly decline since early 2020.

In other news, U.S. envoys Jared Kushner and Steve Witkoff are in Doha, but no talks with Iranian officials are scheduled, according to Iran's Foreign Ministry.

The ministry added that the Strait of Hormuz mine-clearance was governed by an existing memorandum of understanding and does not require third-party involvement. Parliament Speaker Mohammad Bagher Ghalibaf said Iran will not negotiate a final agreement with the U.S. until all memorandum of understanding provisions, including a ceasefire in Lebanon and the release of frozen Iranian assets, are followed through.

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