Oil Prices Plummet as US-Iran Tensions Ease Again
Oil prices plummeted in early trading on Sunday as tensions between the US and Iran continued to ease. The Strait of Hormuz, a key shipping route that handles one-fifth of global oil shipments, remains a central concern for energy markets.
Brent crude for September delivery fell 4.9% to $92.02 a barrel after the second consecutive day without military strikes in the Gulf. The international benchmark had briefly climbed above $102 a barrel last week amid concerns over escalating tensions in the Middle East and potential disruptions to global oil supplies.
The recent rise in oil prices has added to inflation concerns, with market data from CME Group indicating traders are now pricing in a 36% probability that the US Federal Reserve will raise interest rates at an upcoming meeting. Higher interest rates can help curb inflation but may also slow economic activity by increasing borrowing costs for consumers and businesses.