Global oil prices recorded a sharp decline, with Brent crude falling to its lowest level in nearly four months amid easing geopolitical tensions and expectations of increased supply.
According to data reported by Bloomberg, Brent crude traded at $74.80 per barrel before dropping further to around $73.80 per barrel. It marked the first time since late February that Brent crude has fallen below the $75-per-barrel threshold.
Analysts attribute the decline largely to the normalization of oil tanker traffic through the Strait of Hormuz following progress in the US-Iran agreement, which has eased concerns over potential supply disruptions.
Market sentiment has also been influenced by expectations of higher Iranian oil exports after the United States relaxed certain sanctions for a 60-day period. Increased oil production from Gulf countries and discounted cargo sales have further boosted supply in the market.
As a result, investors have begun removing the geopolitical risk premium previously built into oil prices, accelerating the downward trend.
Gold prices also declined during the period, while global stock markets showed signs of improvement.
Despite the recent drop in oil prices, energy experts caution that the situation in the Middle East remains uncertain. Any renewed escalation in regional tensions or disruption to shipping through the Strait of Hormuz could trigger another surge in crude oil prices.
