Oil prices dropped more than 6 per cent as expectations of a possible US-Iran agreement and the reopening of the Strait of Hormuz reduced fears over disruptions to global crude supplies. The decline reflected easing geopolitical concerns that had recently pushed energy markets higher.
Investor sentiment improved after reports indicated progress in diplomatic talks between Washington and Tehran, fuelling hopes that oil exports and shipping activity through the Strait of Hormuz could stabilise. The development triggered a broad sell-off in crude markets as traders anticipated smoother global supply flows.
Analysts said a reopening of the Strait of Hormuz would help ease pressure on international energy markets, given the route’s importance for global oil shipments. Despite the optimism, experts noted that restoring normal trade conditions and rebuilding market confidence could still take time.
