Crude Oil Price Today: Crude oil recovers after huge fall, know what effect the talks between Trump and Iran will have on your pocket.

After the huge fall in crude oil prices in the global market in the past few days, some stability is now being seen. On the one hand, the ongoing security crisis in the Middle East (Western Asia) and on the other hand, expectations of progress in diplomatic talks between America and Iran, have currently put investors in a ‘wait and watch’ situation. After the sharp fall in the market on Thursday, there was not much change in both the international benchmarks – Brent Crude and US West Texas Intermediate (WTI) – on Friday. See the latest crude oil price at a glance (Crude Oil Price Checklist) You can easily understand the current situation of both the major benchmarks of crude oil in the international markets from the table given below: Donald Trump’s claims versus ground reality: Why is there uncertainty? The reason behind this recent decline in oil markets is the statement of US President Donald Trump in which he indicated that his talks with Iran are moving in a positive direction. Speaking to reporters at the White House, Trump said that he "Are in the midst of their final negotiations to end the war with the Islamic Republic of Iran."

This positive attitude of Trump gave the market hope that if a major agreement is reached between the two countries, then the disruptions in the oil supply chain will end forever. However, the ground situation is still quite sensitive: Hezbollah’s stance: Iran-backed extremist organization Hezbollah has rejected the US-backed Ceasefire Proposal between Israel and Lebanon. Diplomatic Challenges: The ongoing conflict has complicated major diplomatic efforts to reduce tensions across the region. However, Trump did not pay much attention to Hezbollah’s move, claiming that the group itself had contacted him to talk about ending hostilities. Why is the ‘Strait of Hormuz’ at the center of the energy market? The route through the Strait of Hormuz is considered most important for the future of crude oil and energy markets. To understand its importance in the global economy, it is important to look at its geographical and commercial importance. Lifeline route of global oil supply As can be seen in the map above, the Strait of Hormuz is an extremely narrow but most important sea route located between Oman and Iran. Nearly one-fifth (20%) of the world’s seaborne crude oil and liquefied natural gas (LNG) shipments pass through this route. This is why any military movement or disruption in the region can set fuel prices on fire across the world. However, futures prices currently remain well below the highs seen earlier this year. Both benchmarks are down about 20% since early April, when a deal between the US and Iran calmed five weeks of fighting. Traders are now busy doing fresh calculations regarding the timing and impact of any new agreement.