ISLAMABAD: Crude oil prices have seen a significant decline in the global market, largely due to US President Donald Trump’s recent statements and announcements regarding the situation in the region.
After his statement, global investor confidence fluctuated, which increased pressure on prices and brought prices down.
According to data, the price of WTI crude oil has decreased to $ 101.40 per barrel, while Brent crude oil was trading at $ 107.70 per barrel. According to a Reuters report, the downward trend in the market continued on Monday, however, experts say that prices are still above the psychological level of $ 100 per barrel.
Trump’s announcement and the situation in the Strait of Hormuz
According to economic experts, this recent fluctuation in prices is linked to US-Iranian tensions and the sensitive situation in the Strait of Hormuz.
President Trump has said on his social media platform that the United States will take strong measures to provide safe passage to ships stranded in the region so that global trade activities can resume without any disruption.
On the other hand, shipping in the Strait of Hormuz is still limited and the signs of a complete peace agreement in the region are not yet clear. Due to this uncertainty, oil prices in the global market are not stable.
US-Iran talks and nuclear deal
Behind-the-scenes talks are also ongoing between the United States and Iran, where both countries are closely examining each other’s positions. President Trump has included the nuclear deal among his priorities, while Iran has suggested that nuclear issues be postponed for the time being until the war ends and sanctions are eased.
OPEC+ decides to increase production
Meanwhile, the Organization of Petroleum Exporting Countries (OPEC+) has announced an increase in oil production by 188,000 barrels per day for its seven member countries in the month of June. However, economists say that as long as tensions in the Middle East persist, the positive effects of this decision may be limited.
