NEW YORK (Kashmir English): US President Trump’s insistence on pursuing a peace deal with Iran rather than war has had a positive impact on the global petroleum market.
According to a global news agency, encouraging trends have been seen since the ceasefire between Israel and Lebanon and President Trump’s hesitation in a war with Iran.
At the end of the day, these price declines were seen further in the international market, with Brent crude falling to $93.5 and West Texas Intermediate crude falling to $91. It is hoped that this will decrease further.
Earlier in the afternoon, the price of Brent crude fell by more than 3 percent to around $94 per barrel, while US West Texas Intermediate crude was also trading at around $92 per barrel, down by about 4 percent.
This decline in petrol prices came after diplomatic progress between Israel and Lebanon and the possibility of a broader peace deal between Iran and the US also became clearer.
A major reason for the decline in oil prices is also being cited as a decrease in concerns about the Strait of Hormuz.
The Strait of Hormuz is one of the world’s most important energy corridors through which a large part of the world’s crude oil is transported by sea.
Over the past few weeks, as tensions between Iran and Western countries have increased, fears were expressed that any disruption in this waterway could push oil prices to record levels in the global market.
However, after recent diplomatic signals, the market has strengthened the impression that shipping in the Strait of Hormuz will continue as usual.
However, the situation in the Middle East remains uncertain, and any military or political developments could change the direction of oil prices again.
