US-Iran Tensions Ease: Oil Prices Drop Amid Middle East Conflict

Oil prices have eased in early trading on Sunday after the United States and Iran refrained from launching military strikes for a second straight day, following increased fighting in the Middle East.

The price of Brent crude oil to be delivered in September dropped 4.9% to $92.02 shortly after trading resumed, while the price of U.S. oil to be delivered in September fell 5.6% to $84.34 on Sunday.

The surge in oil prices this month was driven by worries about a return to all-out war between the US and Iran, which could further slow the global flow of crude.

The conflict has largely halted shipping traffic through the Strait of Hormuz, where five percent of the world's oil leaves the Persian Gulf and heads to customers worldwide. Oil producers have searched for alternative routes, but those are under pressure too.