Oil prices continued their decline on Tuesday, falling by more than $1 a barrel amid hopes of reaching a settlement in the war between the United States and Iran, which has caused major disruptions to global energy flows.
اضافة اعلان
Brent crude futures dropped $1.47, or 1.66%, to $86.89 a barrel by 03:26 GMT, reaching their lowest level since July 20. U.S. West Texas Intermediate (WTI) crude stood at $81.16 a barrel, down $1.45, or 1.76%, also its lowest level since July 20.
Both contracts had slumped by nearly 8% in the previous session after the United States suddenly suspended its airstrike campaign against Iran over the weekend.
U.S. President Donald Trump said on Monday that the United States is holding "good talks" with Iran and that there is a chance of reaching a resolution. However, he noted that U.S. strikes would resume if negotiations fail, while Iran issued similar statements regarding retaliatory action.
"For now, the relief of a potential way out has cooled prices and eased concerns about Houthi attacks on Saudi infrastructure. However, the situation remains highly volatile," IG analyst Tony Sycamore said in a client note.
Afrah Al-Zouba, the acting Foreign Minister in the legitimate Yemeni government, stated that the Houthis are seeking to replicate the Iranian model of disrupting navigation in the Strait of Hormuz and applying it to the Red Sea by disrupting shipping in the Bab al-Mandab Strait.
Prices were also impacted by news that the Caspian Pipeline Consortium's Black Sea terminal on the Russian coast resumed oil loading operations after a week-long outage following Ukrainian drone attacks.
Nevertheless, analysts warned that the risks of supply disruptions spilling over into the Red Sea remain high after Saudi Arabia announced it had shot down drones targeting oil facilities, including sites in Riyadh. The Kingdom stated that these drones were launched from Iraq by Iran-backed armed groups, declaring that it retains the right to respond.
Meanwhile, Iran-aligned Houthis in Yemen claimed they targeted the East-West Pipeline, which transports oil to Saudi Arabia's primary Red Sea port of Yanbu.
Reuters
