Brent crude falls to $103.53 per barrel in global market

Karachi: A decline in crude oil prices has been recorded in the global market following US President Donald Trump’s statement regarding progress in talks with Iran and the decision to forgo immediate military action. Investors are hopeful that diplomatic efforts could ease tensions in the Middle East; however, concerns regarding global energy supplies persist.

According to international media reports, the price of Brent crude fell by 72 cents—or 0.7 percent—to settle at $103.53 per barrel.  The price of US West Texas Intermediate (WTI) crude oil also fell by 52 cents—or 0.6 percent—to settle at $90.97 per barrel.

In a recent statement, Trump said that the US is engaged in productive talks with Iran and has no intention of attacking the country before the midterm elections scheduled for November 3. This statement raised market expectations that a path to de-escalating the conflict and improving oil shipments could be found through diplomatic channels.

Earlier on Thursday, the price of Brent crude had surged by nearly 4 percent following reports of attacks on oil tankers in the Middle East. Tensions in the Strait of Hormuz pose a significant threat to global energy supplies, as any disruption in this waterway could impact global oil availability and prices.

Meanwhile, the US has imposed new sanctions on individuals, networks, and 17 vessels linked to Iran’s oil and petrochemical sectors. Concerns that US oil production could be disrupted by a hurricane in the Gulf of Mexico are also adding to market uncertainty.

Future oil prices in the global market will depend on the progress of US-Iran negotiations, maritime traffic through the Strait of Hormuz, and military tensions in the region. If diplomatic efforts succeed and oil shipments normalize, price pressures could ease; however, the possibility of renewed price hikes remains should there be any new military action or supply disruptions.