Oil Prices Ease After US-Iran Military Strike Pause
Oil prices have eased after a two-month high set last week following a pause in US and Iran's military strikes. The price for a barrel of Brent crude oil to be delivered in September dropped 4.9% to $92.02 on Sunday, falling further from the $102 a barrel briefly hit last week.
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 affecting global crude flow. The Strait of Hormuz, which is the route through which a fifth of the world's oil leaves the Arabian Gulf, has been under pressure since the US and Israel attacked Iran in late February.
Oil producers have searched for alternative routes but those are also under pressure. Attacks on Saudi oil tankers using the Red Sea to leave the region last week added to concerns about reduced shipping traffic and higher fuel prices.