Hope for a deal with Iran; Petrol prices fall by 3% in the global market

Global crude oil prices have fallen by nearly 3% amid hopes of an end to the conflict with Iran and the reopening of the Strait of Hormuz. Following a ceasefire agreement between Israel and Lebanon, investors are optimistic about potential progress in ending the conflict between the US and Iran. This development is expected to restore global oil supplies and ease pressure on prices, leading to a significant drop in Brent crude futures. Brent crude fell by $3.20 (3.27%) to $94.61 per barrel, while US West Texas Intermediate crude dropped by $3.71 (3.86%) to $92.31 per barrel. Iran, however, maintains its control over the Strait of Hormuz, a crucial maritime route through which roughly one-fifth of the world's oil supply passed before the conflict, and disruptions here have impacted the global energy market. Additionally, Houthi forces have blockaded the Bab al-Mandab strait and are targeting Saudi cities, further reducing oil production and supply in the kingdom.