Oil Prices Ease as US and Iran Pause Military Strikes
Oil prices decreased on Sunday after the US and Iran paused their military strikes for a second day in a row, easing concerns about a return to all-out war.
The price of Brent crude oil dropped by 4.9% to $92.02 per barrel, following a 3.9% decline on Friday.
This comes after the US and Israel attacked Iran in late February, which raised worries about the global flow of crude oil.
The Strait of Hormuz, a narrow strip of water off Iran's coast, is a key route for oil shipments to customers worldwide.
Oil producers have searched for alternative routes, but these are under pressure too, with attacks on Saudi oil tankers that were using the Red Sea to leave the region last week.
The ongoing conflict with Iran has dragged consumer confidence lower in the US, and inflation pressures have grown enough that traders believe there's a 36% chance the Federal Reserve will hike its main interest rate at an upcoming meeting.
Higher interest rates could help keep a lid on inflation but may also slow the economy by making borrowing more expensive for Americans and businesses.