Global oil prices fell more than 2% after the US and Iran temporarily halted hostilities.

Global oil prices fell more than 2% after the US and Iran delayed clashes, raising hopes of easing tensions in the Middle East, although experts warn that risks in the Strait of Hormuz remain.

On July 28, 69, CNBC reported that: Global oil prices continued to fall on Tuesday. Following a slowdown in fighting between the United States and Iran and the absence of new clashes, hopes have been raised that tensions in the Middle East, which have been impacting global oil supply, may be beginning to ease.

Brent crude oil futures, the international benchmark price for oil, for September delivery fell more than 2% to $86.52 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude oil futures for September delivery declined 2.3% to $80.71 per barrel.

Although Tehran has denied reports of a 10-day ceasefire with the United States, the confrontation and attacks between the two sides have actually been temporarily halted.

This move comes after reports of dwindling U.S. ammunition reserves, with The New York Times reporting that President Donald Trump, who told Axios on Friday that he was considering a plan... "A major attack on Iran." The plan was decided to be postponed due to concerns about the country's arms stockpile.

However, during a press conference aboard Air Force One en route to Michigan on Monday, Trump dismissed reports of a weapons shortage in the United States, insisting the military has ample arsenal. "ample"

Commonwealth Bank of Australia stated in a report on Tuesday that the recent drop in oil prices reflects a relaxation of market concerns over a sudden escalation of the conflict between the United States and Iran, but analysts warned that risks to global energy supply remain high.

"The deceleration of hostilities between the U.S. and Iran has reduced expectations that the conflict would escalate into serious attacks on energy infrastructure and civilians."

The bank stated in an analytical note, adding a warning that conflicts over traffic along the crucial oil shipping route, the Strait of Hormuz, could reignite fighting.

refer : cnbc.com

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