Global oil prices drop as potential Iran-US deal cools supply fears
The US-Israel war against Iran has resulted in the largest-ever disruption of energy supplies due to Iran's interruption of traffic through the strait, which provides a passage for 20% of the world's oil and liquefied natural gas shipments.
The markets turned optimistic after reports said Iran could allow ships to transit through around the Strait of Hormuz. (AP Photo/ File) Oil prices dropped in early trade Thursday as hopes of de-escalation US-Iran tensions cooled down concerns over ongoing supply disruptions.
Brent crude futures slipped 44 cents, or 0.5%, to $94.49 a barrel at 0021 GMT. US West Texas Intermediate crude futures fell 70 cents, or 0.8%, at $90.59 a barrel.
The markets turned optimistic after reports said Iran could allow ships to transit through the Strait of Hormuz. On Wednesday, he White House sounded hopeful about reaching an agreement to end the war with Iran, while also warning of increasing economic pressure against Tehran if it remains defiant.
The US-Israel war against Iran has resulted in the largest-ever disruption of energy supplies due to Iran’s interruption of traffic through the strait, which provides a passage for 20% of the world’s oil and liquefied natural gas shipments.
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