Oil Prices Plunge Amid US-Iran Tensions, Rebound Amid Hormuz Uncertainty
Crude oil prices saw significant volatility last week due to tensions between the US and Iran. After US President Donald Trump called off a planned strike on Iran, crude oil prices plummeted by over 7% to $83.77 per barrel.
The sharp sell-off was attributed to Trump's decision to pursue fresh negotiations with Tehran instead of military action. However, Iranian Foreign Ministry spokesman Esmail Baghaei rejected Trump's claim, stating that no negotiations were taking place and no meetings were scheduled.
Analysts at energy advisory firm Ritterbusch and Associates described the sharp sell-off as 'another overreaction' to Trump's comments. They noted that Trump has a history of occasionally talking down oil prices to prevent sustained advances in petrol prices.
However, by Thursday, crude prices had reversed course sharply, driven by reports that Iran was reviewing legislation to ban US and Israeli ships from transiting the Strait of Hormuz.