China's Peace Push Sends Oil Prices Plummeting Amid Ongoing Tensions
Oil prices plummeted over 4% on Friday as traders took profits and amid reports that China was pushing for resumed peace talks between the US and Iran.
The news comes after a week of heightened tensions in the region, which saw the US and Iran exchange missile strikes. This led to a significant decline in traffic through the Strait of Hormuz, with only three vessels passing through the waterway over the past three days, according to preliminary data from Kpler.
Despite this, analysts at JPMorgan warned that each additional month of disruption to oil supply would add $7-$8 to Brent prices, potentially lifting monthly averages to around $114 a barrel if disruptions extend to three months.
Russia also announced on Friday that its forces had struck three Ukrainian ports overnight, targeting infrastructure supporting Kyiv's armed forces. Kazakhstan's energy ministry reported earlier this week that oil companies had temporarily reduced production after suspected Ukrainian drone attacks forced the country's main Black Sea export terminal to close.