ISLAMABAD (Kashmir English): Global crude oil prices have dropped following US President Donald Trump’s statement regarding progress in negotiations with Iran and his decision not to take immediate military action.
According to international media reports, the price of Brent crude fell by 1.23% to $103 per barrel, while the price of US West Texas Intermediate (WTI) crude dropped by 1.15% to $90.44 per barrel.
The primary reason cited for this decline is President Trump’s recent statement, in which he noted that the US is engaged in productive talks with Iran and has no intention of attacking the country before the midterm elections scheduled for November 3.
President Trump’s statement has raised hopes among global investors that the ongoing conflict in the Middle East might end and oil supplies could normalize; however, concerns regarding global energy supplies persist due to continued regional tensions.
It is worth noting that on Thursday, the price of Brent crude had surged by nearly 4% following attacks on oil tankers in the Middle East.
Meanwhile, escalating tensions in the Strait of Hormuz remain a source of ongoing concern for the global market, given the route’s critical importance to worldwide oil shipments.
According to economic experts, progress in US-Iran negotiations and the regional security situation will play a pivotal role in determining the trajectory of oil prices in the coming days.
