WASHINGTON: US President Donald Trump has postponed a planned military strike on Iran, opting instead to continue negotiations, a move that has led to a noticeable drop in global oil prices.
Following the announcement, Brent crude fell by 1.3 percent to $89.17 per barrel, while West Texas Intermediate (WTI) declined by 1.4 percent to $86.48 per barrel. On a weekly basis, both benchmarks recorded a decline of more than four percent.
Market analysts say the decision reduced investor fears of escalation in the Middle East, triggering an immediate reaction in energy markets. However, uncertainty remains as tensions persist in the region.
Concerns are still high due to Iran’s stance on the strategic Strait of Hormuz, through which nearly 20 percent of the world’s oil and liquefied natural gas supplies pass. Any disruption in this route could significantly impact global energy markets.
Experts suggest that if diplomatic progress continues between the United States and Iran, oil prices may decline further. However, any renewed conflict could quickly reverse the trend.
