Oil Prices Fall as US-Iran Tensions Eases

Oil prices declined sharply on Sunday after the United States and Iran avoided fresh military action in the Persian Gulf for a second consecutive day, easing immediate fears of supply disruptions.

The price for a barrel of Brent crude oil to be delivered in September dropped 4.9% to $92.02 shortly after trading resumed, following a 3.9% drop on Friday.

Brent crude, the international standard, briefly hit $102 a barrel last week, which is $30 more than its value at the start of the month and the highest it had been since May.

The ability to pass safely through the Strait of Hormuz has been a central concern for the oil market since the US and Israel attacked Iran in late February. The narrow strip of water off Iran's coast is the route through which a fifth of the world's oil typically leaves the Persian Gulf and heads to customers worldwide.