Oil Prices Swing on Middle East Conflict Hopes
Crude oil prices have been fluctuating wildly as hopes for an end to the Middle East conflict wax and wane. Market expectations about a resolution were reflected in oil prices, which initially dropped but then regained some ground.
The situation took a turn when President Donald Trump rejected an Iranian proposal to restore full traffic through the Strait of Hormuz. This setback led to a decline in crude oil prices as investors became disappointed with the lack of progress towards a diplomatic resolution.
However, fresh optimism emerged as reports surfaced that US and Iranian officials were continuing separate discussions with mediators. Additionally, Saudi Arabia restored roughly half the flows through its East-West pipeline, which helped abate the decline in crude oil prices.