Oil Prices Fall as Markets Eye Possible US-Iran Ceasefire

Oil prices are down as markets weigh the possibility of a US-Iran ceasefire. The North Sea Brent crude price is down 1.5 percent at $105.04 per barrel, while US light crude WTI is down 2.3 percent at $92.41 per barrel.

US and Iranian negotiators are exploring the possibility of ending the military conflict, which could include Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran. This would be a significant development, as since the start of the war in late February, around one-fifth of oil and natural gas supplies have been disrupted.

The attacks by pro-Iranian Yemeni Houthi rebels on Saudi Arabia are also a concern for markets. Saudi Arabia intercepted six ballistic missiles launched by the Houthis, thwarting attacks on a southern province near the Red Sea. This highlights that key oil facilities remain in the conflict zone.