Oil Prices Retreat as US-Iran Tensions Ease

Oil prices declined in early trading on Sunday after the United States and Iran refrained from launching military strikes for a second consecutive day. The price of Brent crude oil, which serves as an international standard, dropped by 4.9% to $92.02 per barrel for delivery in September.

This decline follows a 3.9% drop on Friday, when the price briefly hit $102 per barrel, its highest point since May. The surge in oil prices this month was largely due to increased fighting in the Middle East and concerns over a return to all-out war, which would further slow global crude flow.

The ability of tankers to safely pass through the Strait of Hormuz has been a central concern for the oil market since the US and Israel attacked Iran in late February. The conflict has largely halted shipping traffic, forcing oil producers to search for alternative routes.