Oil prices remained firm on Monday but stayed below the USD 75-per-barrel mark after easing geopolitical tensions between the United States and Iran helped calm supply concerns in global markets.
Brent crude was trading at around USD 72.39 per barrel, up roughly 0.5 per cent on the day, recovering part of the sharp losses seen late last week. The benchmark had dropped more than 4 per cent on Friday as fears of a prolonged disruption in the Middle East began to fade. Meanwhile, U.S. West Texas Intermediate (WTI) crude hovered near USD 69.81 a barrel, rising about 0.8 per cent.
The recent volatility in oil prices has been closely linked to developments around the Strait of Hormuz, a critical chokepoint through which a large share of the world’s crude shipments passes. Prices had surged earlier on concerns that escalating tensions between Washington and Tehran could disrupt shipping routes and tighten global supply.
However, sentiment shifted at the start of the week after signs of de-escalation emerged. According to reports, the United States and Iran have agreed to halt strikes against each other, easing fears of further military confrontation in the region. The two sides are also expected to hold talks in Doha on June 30 to address their dispute over the Strait of Hormuz.
The possible reopening of the vital shipping lane to global traffic has helped stabilise the market, reducing immediate concerns over supply bottlenecks.
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.
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