Oil Prices Ease After US and Iran Halt Hostilities
Oil prices have eased after the US and Iran paused their attacks in the Persian Gulf for a second straight day. The price of Brent crude oil, the international standard, dropped by 4.9% to $92.02 (NZ$158) per barrel.
This decline follows a 3.9% drop on Friday, with prices briefly hitting $102 (NZ$175) a barrel last week, their highest level since May. The surge in oil prices this month was due to increased fighting in the Middle East and concerns about a return to all-out war, which could further slow the global flow of crude.
The Strait of Hormuz, through which a fifth of the world's oil typically passes, has been a central concern for the oil market. Attacks on tankers have halted shipping traffic, with alternative routes also coming under pressure. This has resulted in higher prices for consumers, with the average price for regular gasoline in the US reaching $4.11 (NZ$7.08) per gallon.