Oil Prices Plummet Amid Escalating Tensions with Iran
Global markets remained volatile on Friday as oil prices fell to $104 per barrel after reaching its highest level since May. The drop came amid rising tensions between the US and Iran, which has intensified concerns over global energy supplies.
The Brent crude price declined by 3.3% to $104.09 per barrel, while benchmark US crude fell 2.8% to below $100 per barrel at $99.63. The Strait of Hormuz, a critical waterway for oil transport, saw oil flows remain 'well below pre-war levels,' according to ING commodities strategists Warren Patterson and Ewa Manthey.
Despite the decline in oil prices, Yu Song, chief China economist at UBS Securities, warned that even if tensions ease, crude prices are likely to stay elevated for the rest of the year, exacerbating inflation uncertainties. The warning comes as US diesel prices soared past $6 per gallon on average, setting a new record.