Middle East Supply Fears Ease as Oil Prices Plummet Over 5%

Oil prices plummeted by over 5% this week as diplomatic efforts eased concerns about supply disruptions in the Middle East.

The decline in oil prices was largely driven by lower supply disruption risks, alongside uncertainty over global demand and US monetary policy.

Brent crude traded at $87.88 per barrel on Friday, down 5.2% from last week's close of $92.67, while West Texas Intermediate (WTI) crude traded at $82.83 per barrel, down 4.9% from $87.06 a week earlier.

The US launched Operation Economic Outcast on Monday to further isolate Iran from the global financial system, but prices extended losses on Tuesday amid concerns that tensions could weigh on global oil demand.