Middle East Tensions Ease as Oil Prices Dip
Oil prices declined by 5% over the past five days as diplomatic efforts eased concerns about supply disruptions in the Middle East. The Brent crude price settled at $87.88 per barrel, down 5.2% from last Friday's close of $92.67. Similarly, US benchmark West Texas Intermediate (WTI) crude traded at $82.83 per barrel, a decline of 4.9% from $87.06 the previous week.
The downward trend in oil prices started earlier this week as escalating tensions between the US and Iran, renewed trade friction between the US and Canada, and uncertainty over the Federal Reserve's interest-rate outlook weighed on market sentiment. On Monday, the US launched Operation Economic Outcast, a campaign aimed at isolating Iran from the global financial system.
US Secretary of State Marco Rubio signaled a shift away from military strikes against Iran toward economic pressure, easing immediate fears of supply disruptions. The Qatari Prime Minister and Foreign Minister Mohammed bin Abdulrahman Al Thani traveled to Tehran on Thursday for talks aimed at de-escalating regional tensions and advancing negotiations over the Strait of Hormuz.