Summary Global oil prices fell nearly 3% as hopes of a US-Iran agreement and the reopening of the Strait of Hormuz raised expectations of improved supplies.
LONDON (Web Desk) – Global oil prices fell by nearly 3% as hopes of a possible agreement between the United States and Iran raised expectations of an end to the conflict and the reopening of the Strait of Hormuz.
According to Reuters, a ceasefire agreement between Israel and Lebanon has fuelled optimism among investors that Washington and Tehran could also make progress towards ending hostilities.
The prospect of restoring oil supplies through the strategic waterway eased concerns over global energy markets, putting downward pressure on crude prices.
Brent crude futures fell by $3.20, or 3.27%, to $94.61 a barrel. US West Texas Intermediate crude declined by $3.71, or 3.86%, to $92.31 a barrel.
However, uncertainty remains over shipping through the Strait of Hormuz. Iran has claimed to retain control of the strategic passage, where disruptions have affected the movement of energy supplies.
Before the conflict, the strait carried roughly one-fifth of the world’s oil supply, making it one of the most important routes for global energy trade.
Any sustained disruption could continue to affect oil availability and prices, while progress towards a US-Iran agreement and the restoration of normal shipping could help ease supply concerns.
