Brent Crude Price Unwinds War Premium Amid Ongoing Iran-US Tensions

The price of Brent crude oil has dropped by around 10% over three sessions, but experts say this is not due to an increase in supply. Instead, it's a result of the unwinding of a 'war premium' that was added to prices during the recent conflict between the US and Iran.

The US halted its campaign of strikes against Iran on Friday, and Tehran said it would suspend retaliatory operations. The two countries have since entered talks with Oman about navigation through the Strait of Hormuz.

Crude loadings resumed at a key terminal in Russia after being shut by drone strikes, but supply conditions remain tight. One-fifth of global oil supplies pass through the strait, and it may take time for trade to normalize even if a deal is reached.