Oil Prices Rebound as US, Iran Pause Military Strikes
Oil prices eased on Sunday after the US and Iran refrained from launching military strikes in the Persian Gulf for a second straight day.
The price of Brent crude oil, which is used as an international standard, dropped by 4.9% to $92.02 per barrel, following a 3.9% drop on Friday.
This decline came after the US and Iran's previous conflict in late February led to increased fighting in the Middle East, causing concerns about a return to all-out war that would further slow the global flow of crude oil.
The Strait of Hormuz, which is a narrow strip of water off Iran's coast, has been a central concern for the oil market since the US and Israel attacked Iran. The conflict has largely halted shipping traffic, with attacks hitting Saudi oil tankers last week that were using the Red Sea to leave the region.
Oil producers have searched for alternative routes but they too are under pressure. If oil prices stay elevated, it could lead to higher prices for every product that gets shipped, trucked or flown around the world, including groceries.