Oil prices ease after US and Iran pause their attacks
NEW YORK (AP) — Oil prices fell in early trading Sunday. two month high It was determined last week, then USA and Iran It refrained from launching a military strike in the Persian Gulf for the second day in a row.
The price of a barrel of Brent crude oil for delivery in September fell 4.9% to $92.02 shortly after trading resumed. The decline follows a 3.9% drop on Friday.
Brent crude oil, the international standard, briefly hit $102 per barrel last week. This means the most actively traded contract on the Brent market was $30 higher earlier in the month, the highest level seen since May.
oil prices increased this month because Conflicts increased in the Middle East and worries that a return to all-out war would further slow progress global crude oil flow.
Tankers can pass safely Strait of Hormuz It has been the main concern of the oil market since the US and Israel attacked Iranian In late February. The narrow strip of water off Iran’s coast forms the route for a fifth of the world’s oil from the Persian Gulf to customers around the world, and the conflict has largely halted shipping traffic.
Oil producers have been searching ever since alternative routesBut they are also under pressure. Last week, there were attacks on Saudi oil tankers using the Red Sea to leave the region. When there is less oil available for customers to purchase, the price increases and so do fuel prices.
According to the AAA motor club, the average price of a gallon of regular gasoline in the United States rose to $4.11 on Sunday; This figure was $3.90 a month ago and just $3.15 a year ago.
If oil prices remain high, this higher prices for each product shipped, trucked or flown anywhere in the world, including groceries. Although the US economy continues to grow, the ongoing conflict with Iran has caused consumer confidence to decline.
The renewed rise in oil prices this month comes as inflation began to slow more than economists expected. Now traders believe inflation pressures have grown large enough that they are investing in a 36% chance Federal Reserve According to data from CME Group, it will increase the main interest rate at the next meeting.
Higher interest rates can help keep inflation under control, but they can also slow down the economy by reducing inflation. It’s more expensive for Americans and businesses of all kinds to borrow money.
Long-term mortgage rates in the USA have already reached their highest level highest levels in almost a yearfor example, cooling the residential sector. And more expensive borrowing could slow the boom in building AI data centers that has become a major engine in the growth of the U.S. economy.
