Oil Prices Drop to Two-Week Lows Amid Gulf Supply Recovery and Diplomatic Hopes

The global oil market has seen prices drop to two-week lows as diplomatic efforts and supply recovery in the Gulf region take hold.

Brent crude futures fell by $1.09, or 1.1 percent, to trade at $98.16 a barrel, while West Texas Intermediate dropped $1.50, or 1.67 percent, to $89.01 per barrel.

The decline is attributed to the resumption of operations on Saudi Arabia's East-West Pipeline, which transports crude to the Red Sea port of Yanbu and serves as a vital bypass for maritime routes through the Strait of Hormuz heavily disrupted by the ongoing US-Israeli military campaign against Iran.

Tim Waterer, chief analyst at KCM Trade, noted that the market is pricing in a more constructive global supply picture than it was just weeks ago, with traders focusing on parallel diplomatic maneuvers between Washington and Tehran.