Global oil prices declined sharply on Monday after the United States and Iran paused their recent military exchanges, raising optimism that diplomatic efforts could resume and shipping through the Strait of Hormuz could return to normal.
The latest easing in tensions followed 13 days of hostilities between the two countries. The United States refrained from launching new strikes over the weekend, while President Donald Trump's envoy to the United Nations said Washington was allowing room for diplomacy. Iran also announced it would halt retaliatory attacks against neighboring countries, easing concerns over disruptions to oil exports from the Gulf.
The conflict had intensified earlier this month after Iran targeted vessels transiting the Strait of Hormuz, one of the world's most important oil shipping routes. The escalation later spread beyond the Gulf, with Iran-backed Houthi fighters attacking Saudi-linked vessels in the Bab al-Mandeb Strait, another critical maritime corridor.
Oil prices had surged above $100 per barrel last week amid fears of supply disruptions. However, reports that shipping activities in the Red Sea remained uninterrupted, along with renewed diplomatic contacts involving Oman and Pakistan, helped calm market concerns.
Iran's Foreign Ministry said discussions with Oman focused on practical measures to guarantee the safe passage of commercial vessels through the Strait of Hormuz while respecting the sovereignty of all parties involved.
As a result, Brent crude fell by more than 6 percent to around $90.56 per barrel, while West Texas Intermediate (WTI) dropped about 6.5 percent to $83.54 per barrel.
Market analysts said the latest developments reduced fears of prolonged supply disruptions and eased concerns about renewed inflation, supporting gains in global stock markets. Major Asian and European indices recorded gains, although technology stocks remained under pressure due to concerns over heavy artificial intelligence investments.
Investors are also awaiting earnings reports from major technology companies, including Microsoft, Meta, Apple, Amazon, Samsung, SK hynix, and Kioxia, as well as the U.S. Federal Reserve's policy decision later this week.
While the Federal Reserve is expected to keep interest rates unchanged for now, some analysts believe further monetary tightening remains possible before the end of the year if inflationary pressures persist.
.jpeg)
.jpeg "Sunayen kofofin aljanna guda takwas 8")
0 Comment about the Post: