Oil Prices Ease After US and Iran Pause Military Strikes
Oil prices declined on Sunday after the United States and Iran paused their military strikes for the second straight day, easing concerns of a return to all-out war in the Middle East.
The price of Brent crude oil to be delivered in September dropped 4.9% to $92.02, following a 3.9% decline on Friday. This comes after the oil market saw prices surge this month due to increased fighting and concerns over the safety of tankers passing through the Strait of Hormuz.
The narrow waterway off Iran's coast is a crucial route for global oil shipments, with a fifth of the world's oil typically leaving the Persian Gulf via this route. However, attacks on Saudi oil tankers using the Red Sea have added to concerns over oil availability and prices.
As a result, the average price for a gallon of regular gasoline in the United States rose to $4.11, up from $3.90 a month ago and $3.15 a year ago. This could lead to higher prices for products shipped, trucked, or flown around the world.