Oil Prices Plunge Amid Ongoing US-Iran Tensions

Oil prices dropped by nearly 7% last week, falling below $80 per barrel, while Brent oil declined by around 6%, trading near $83 per barrel.

The decline in oil prices comes as investors are cautious about the ongoing situation between the US and Iran, with President Donald Trump canceling a broad attack he had threatened. This move has led to speculation that the US is seeking to extract gains through diplomacy rather than military action.

However, analysts warn that the risks of a return to escalation remain high, given the continuous renewal of hostilities in the region and the recent announcement by Trump that talks are taking place with Iran regarding the management of the Strait of Hormuz.

The Organization of the Petroleum Exporting Countries (OPEC+) has announced plans to raise oil production in September for the sixth consecutive month. However, this increase may be limited by the essential reliance of Saudi Arabia, Kuwait, and Iraq on exports via tankers through the Strait of Hormuz.