DOHA: Crude oil prices in the global market dropped after the conclusion of indirect talks between the United States and Iran in Qatar.
Qatari officials described the talks as a “positive development”, after which investor concerns decreased, and oil prices fell. According to the international news agency Reuters, the price of Brent crude oil fell by 73 cents, or 1.02 percent, to $70.84 per barrel, while the price of US West Texas Intermediate (WTI) crude oil fell by 83 cents, or 1.21 percent, to $67.75 per barrel.
According to the report, prices of both global crude oil benchmarks fell by more than 1% in the last trading session, marking the lowest level in the last four months. According to sources, US and Iranian negotiators discussed important issues such as maritime traffic in the Strait of Hormuz, global shipping security, and the recovery of Iran’s frozen financial assets during the two-day talks in Doha.
The Strait of Hormuz is one of the world’s most important sea lanes, through which about 20 percent of the global crude oil supply passes before the war. That is why tension or stability in this region directly impacts global energy markets.
Analysts say that if the diplomatic progress between the US and Iran continues and the situation in the Strait of Hormuz returns to normal, then further pressure may be put on oil prices in the global market. However, they say that in the event of any new tensions in the region, prices could rise sharply again.
According to experts, investors are currently closely watching the upcoming talks between the two countries, the resumption of maritime activities in the Strait of Hormuz, and possible decisions regarding Iran’s frozen assets, as these factors will determine the direction of the global energy market in the coming days.
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