Hopes for peace between the US and Iran have once again led to a softening trend in crude oil prices in the international market. Today, Brent crude and West Texas Intermediate (WTI) crude prices fell by more than five percent. This decline caused Brent crude prices to fall to $83.31 per barrel, while WTI crude prices also fell below $80 to $78.78 per barrel.
Brent crude oil opened trading today, down $3.97 per barrel at $83.96 per barrel. Shortly after trading began, it briefly rose to $84.11 per barrel, but later fell. In early trade, Brent crude oil fell to $83.31 per barrel. However, its price subsequently rose slightly. At 9:30 a.m. IST, Brent crude oil was trading at $83.41 per barrel, down $4.52 per barrel, or 5.14 percent. Similarly, West Texas Intermediate (WTI) crude oil opened trading today, down $3.86 per barrel, at $80.81 per barrel. Initially, it briefly rose to $81.30 per barrel, but then recovered. Within the first hour, WTI crude oil prices fell below $80 per barrel to $78.78. At 9:30 am IST, WTI crude oil was trading at $79.76 per barrel, down $4.91 or 5.80 per cent.
Crude oil prices have fallen due to renewed concerns about the cessation of hostilities in West Asia and the prospects for peace. It’s worth noting that the breakdown of the US-Iran ceasefire and continued attacks by both countries on each other’s bases led to a nearly 25% increase in the international crude oil market in July. This increase in July was the largest monthly increase since March. This increase in crude oil prices has raised new concerns about global inflation.
However, now US President Donald Trump has announced the cancellation of a major attack plan and the resumption of talks with Iran, which has led to a softening of crude oil prices in the international market. Donald Trump said that he decided to stop the attack on Iran at the request of West Asian allies, including Saudi Arabia, who had appealed to him for a solution through talks. He said that he had agreed to withdraw on the condition that officials quickly reach an agreement to reopen the Strait of Hormuz.