Oil prices continue to decline

Brent crude settled at $91.49 per barrel, down 1.2%, while West Texas Intermediate (WTI) crude fell 0.9% to $86.04 per barrel. Statements from the U.S. administration suggesting that further large-scale military operations against Iran were unnecessary helped ease concerns about oil supply disruptions in the Middle East, putting downward pressure on prices.

Growing prospects for a diplomatic resolution reduced the geopolitical risk premium in oil markets, although shipping security around the Strait of Hormuz remains a key concern. Statements from Iranian officials indicating that no negotiations with the United States are currently underway were among the factors limiting the decline in prices. Investors continue to closely monitor political developments in the Middle East, global oil demand, and supply policies of major producing countries. A sustained decline in oil prices could help ease costs and inflationary pressures in energy-importing economies.