OPEC+ Boosts Production Amid Easing Tensions Between US and Iran

Crude oil prices plummeted on Friday after OPEC+ agreed to increase production by another 188,000 barrels per day in September. The decision added to the bearish pressure that had been building due to easing tensions between the US and Iran.

The price of Brent crude, the global benchmark, dropped from its high of $91 last week to $84 on Friday. West Texas Intermediate (WTI) also fell to $81, a decline of over 13% from its July highs.

The reason for the drop in oil prices was the news that President Donald Trump had eased fears of an imminent escalation with Iran after being asked by Iranian leaders and other Middle Eastern countries to hold off any attack. Trump noted that parameters of a deal to reopen the Strait of Hormuz had been agreed to, which helped to calm markets.

However, analysts warn that the fighting between the US and Iran may not be over yet. The two sides have yet to reach a formal ceasefire agreement, leaving the risk of hostilities resuming at any time.