New York (Lord Media): Global oil prices have seen a significant drop, with Brent crude reaching its lowest level in nearly four months. According to Bloomberg, Brent crude was trading at 74.80 U.S. dollars per barrel, later falling further to 73.8 U.S. dollars per barrel. This marks the first time Brent crude has fallen below 75 U.S. dollars per barrel since tensions between the U.S. and Israel with Iran began in late February.
The sharp decline in oil prices is attributed to the normalization of oil tanker traffic through the Strait of Hormuz following a U.S.-Iran agreement. Additionally, the potential increase in Iranian crude exports, following the U.S. easing sanctions for 60 days, is expected to boost global supply.
Furthermore, increased oil supply from Gulf countries and some cargoes being sold at discounted rates have also contributed to the price drop. These developments have led investors to remove the geopolitical risk premium from oil prices, resulting in a further rapid decrease.
