Iran-US talks announced: Significant drop in oil prices in the global market

ISLAMABAD: After US President Donald Trump’s promising statements regarding progress in talks with Iran, crude oil prices have recorded a significant drop in the global market.

According to international news agencies, the price of global standard Brent crude oil fell by more than five percent, after which it came to about $ 105 per barrel, while the price of US crude oil also saw a clear decline.

The US President, while talking to reporters on Wednesday, said that negotiations with Iran have entered the final stages and he hopes that an agreement can be reached soon. After this statement, there was temporary satisfaction among investors, due to which pressure on the global oil market was reduced.

On the other hand, possible obstacles in the Strait of Hormuz, the situation in the Middle East and the uncertain situation related to Iran are still considered important risks for the global energy market. According to the news agency, the limited movement of some ships through the Strait of Hormuz has also provided temporary relief to the market.

International financial institutions have warned that if negotiations between Iran and the United States are not successful or military tensions in the region increase again, oil prices could rise to the level of 120 to 200 dollars per barrel again. It should be noted that the global oil market has been subject to continuous fluctuations this year due to tensions related to Iran and the situation in the region.