Oil Prices Plummet Amid US-Iran Negotiations
Oil prices plunged sharply on July 28th, with Brent crude falling more than 6% and West Texas Intermediate declining by over 5.4%. The decline comes after US-Iran negotiations gained momentum, with Israeli Prime Minister Benjamin Netanyahu's visit to Washington reportedly aimed at keeping the US engaged in the conflict.
The escalation of hostilities between the two nations pushed Brent above $100 a barrel for the first time since late May. However, the conflict was halted before the end of last week, and Tehran warned that attacks could resume if Washington continued its military campaign.
US President Donald Trump stated that Washington and Tehran were in talks with a potential agreement in view but cautioned that America would resume military action if diplomacy fails. The shifting geopolitical landscape has caused crude prices to swing dramatically, complicating forecasts according to Norbert Rucker, head of economics and next-generation research at Julius Baer.