The recent decline in oil prices is primarily driven by fading fears of supply disruptions. Earlier, markets had priced in worst-case scenarios, including a prolonged conflict and potential blockage of critical energy trade routes. However, as ceasefire negotiations progressed, traders began unwinding these risk premiums.
Oil prices fall 1% as investors weigh pause in US strikes on Iran
Oil prices dropped as market participants assessed a pause in US strikes on Iran. Hopes for a diplomatic solution eased concerns about Middle East energy