Oil Prices Plummet on Easing Supply Fears

Oil prices have plummeted by 5% this week, dropping to $89.3 (Sh11,568) per barrel as concerns over disruptions to Middle East oil supplies ease.

The decline reverses gains from the previous two weeks, with traders now viewing the Iran situation as an economic and sanctions confrontation rather than a physical threat to oil supplies.

Improving flows through the Strait of Hormuz and a proposed framework between Iran and Oman to manage the waterway have reduced concerns over a prolonged supply shock.

The United States has halted attacks on Iran for about a month, instead seeking to increase economic pressure on Tehran, raising market expectations that Gulf supply disruptions could ease.