Oil Prices Decline After US and Iran Pause Military Strikes

Oil prices declined in early trading on Sunday after the US and Iran paused their military strikes for a second consecutive day, easing concerns about a wider conflict that could disrupt global oil supplies.

The price of Brent crude oil, the international standard, fell 4.9% to $92.02 per barrel as it was set to be delivered in September. This decline followed a 3.9% drop on Friday and marked a decrease from its two-month high of $102 a barrel reached last week.

The conflict in the Middle East has caused oil prices to surge this month, with concerns about a return to all-out war slowing down the global flow of crude oil. The Strait of Hormuz, a narrow strip of water off Iran's coast, is a critical route for oil shipments, and disruptions have led to alternative routes under pressure.

The price hike has affected consumer confidence in the US economy, with inflation pressures growing due to the ongoing conflict with Iran. This has led traders to bet on a 36% chance of the Federal Reserve hiking its main interest rate at an upcoming meeting, according to CME Group data.