Oil Prices Plummet as US-Iran Tensions Ease

The oil market saw a sharp decline this week as traders reacted to signals that both the US and Iran are ready to return to negotiations, reducing fears of military strikes disrupting supplies.

The price of Brent fell towards $91 per barrel, while WTI dropped below $84. European natural gas prices also corrected after weeks of increases.

A pause in hostilities over the weekend, with no US strikes reported for a second consecutive night, contributed to the decline. Iranian military officials stated that since the US stopped attacks, Iran had also ceased retaliatory actions.

Analysts warn that the pause remains fragile, with tensions continuing between the two countries. The Houthi movement claimed to have struck two Saudi oil tankers in the Red Sea, and Saudi Arabia conducted strikes against the Houthis over the weekend.