US-Iran Pause Triggers Oil Price Drop
Oil prices have eased following a pause in US and Iran's military strikes. The price for Brent crude oil to be delivered in September dropped by 4.9% to $92.02 on Sunday, after a 3.9% decline the previous day.
The price surge was caused by increased fighting in the Middle East and concerns about a return to all-out war, which would further slow global crude oil flow. The Strait of Hormuz, a key shipping route through which a fifth of the world's oil is transported, has been a central concern for the oil market.
The ongoing conflict with Iran has dragged down consumer confidence in the US economy and contributed to higher prices for products that rely on oil transportation, including groceries. The average price for a gallon of regular gasoline in the United States was $4.11 as of Sunday, up from $3.90 a month ago.