Crude oil prices in the global market have suddenly seen a big drop on Wednesday and Thursday, and prices have fallen below the psychological level of $100.
The main reason for this decline is said to be the recent progress on the diplomatic front between the United States and Iran and the reduction in fears of a prolonged energy crisis. The price of global benchmark Brent crude has recorded a significant decline of about 11%, after which it has reached the level of $97 per barrel, which is the lowest price since April.
On the other hand, the price of US West Texas Intermediate has also fallen to around $91, which has created a stir in global markets. The sharp drop in oil prices came after reports that the US and Iran were close to agreeing on a one-page memorandum of understanding to end the ongoing dispute.
Market sentiment changed when President Trump signaled an end to the dispute in a social media post, saying that the Epic Fury would now come to an end and the Strait of Hormuz would be opened to everyone, including Iran. It should be noted that oil prices had previously reached $126 due to a naval blockade in the Middle East, but the ceasefire and the possible restoration of sea routes have sent a wave of calm through financial markets.
Although Iranian officials have described the current conditions as a “US wish list” rather than a definitive reality, investors have raised hopes for an end to the dispute.
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