Global oil prices tumbled on Monday, with Brent crude slipping below the USD100 per barrel mark for the first time in recent sessions, as easing geopolitical tensions in West Asia influenced market sentiment. The decline comes amid growing optimism over a potential peace agreement involving the United States and Iran.
Brent crude was last trading at USD 99.43 per barrel, down USD 4.11 or nearly 4 per cent, while U.S. benchmark West Texas Intermediate dropped sharply by USD 4.30, or 4.45 per cent, to USD 92.30 per barrel.
The decline in prices follows remarks from U.S. President Donald Trump indicating that a broad agreement between the U.S., Iran and regional nations has been largely negotiated. According to statements, final details of a major Iran-related peace deal are currently being worked out, with a formal announcement expected shortly.
Trump also noted that discussions with leaders from Gulf countries and Pakistan had “gone very well,” while a separate conversation with Israeli Prime Minister Benjamin Netanyahu yielded similar progress. He further indicated that the Strait of Hormuz, a vital chokepoint for global oil shipments, would be reopened as part of the peace framework, easing concerns over potential supply bottlenecks.
Meanwhile, broader global markets on Friday showed a comparatively steady performance. U.S. equities ended higher, with the Dow Jones rising 0.58 per cent, while the Nasdaq and S&P 500 posted modest gains. European markets were also in positive territory, with Germany’s DAX climbing over 1 per cent.
Oil Price History
Oil prices have remained highly volatile, with concerns mounting over potential supply disruptions at the Strait of Hormuz, a critical maritime chokepoint that handles nearly 20 per cent of global oil flows, heightening inflation risks for economies worldwide.
Earlier on April 30, Brent climbed near a multi-year high of USD 126 a barrel, gaining nearly 7 percent intraday, extending the momentum built on the back of a strong surge earlier. Before, on March 9, Brent crude surged over 27 per cent to trade at a multi-year high of USD 119 a barrel amid escalating West Asia tensions.
The prices later dropped significantly after the ceasefire announcement and coordinated oil reserve release by major G7 economies. The oil price, although at a multi-year high, is still lower than its all-time high of USD 147 per barrel seen in July, 2008. The recent hike was also lower than the USD 130 per barrel price that was hit in 2022 during the Russia-Ukraine crisis.
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