Oil Prices Plummet After US-Iran Ceasefire

Oil prices declined on Sunday after the US and Iran refrained from launching military strikes in the Persian Gulf for the second straight day. The price of Brent crude oil, a global benchmark, fell by 4.9% to $92.02 per barrel. This comes after a 3.9% drop on Friday.

The recent surge in oil prices was driven by increased fighting in the Middle East and concerns over a return to all-out war, which would further slow the global flow of crude. The Strait of Hormuz, a narrow waterway off Iran's coast, is a critical route for oil shipments. The US and Israel's attack on Iran in late February had largely halted shipping traffic through this area.

Oil producers have sought alternative routes, but these are also under pressure. Last week, attacks hit Saudi oil tankers using the Red Sea to leave the region. As a result, less oil is available for customers to buy, driving up prices and fuel costs.