Global oil prices plummeted following Trump's statement — Reuters
Oil prices on global markets have recorded their sharpest weekly decline in the past six months.
This was reported by Reuters.
This trend was triggered by a statement made by U.S. President Donald Trump regarding a ten-day temporary suspension of strikes on Iran’s energy infrastructure.
According to the latest trading data, Brent crude futures fell by 84 cents, settling at $107.17 per barrel.
Meanwhile, U.S. West Texas Intermediate crude lost more than a dollar in value, dropping to $93.46 per barrel.
Despite a brief price spike on Thursday due to fears of escalation, both major benchmarks ended the week down 4.6%.
The market reacted immediately to signals of a possible de-escalation of the conflict in the Middle East.
“Despite talk of de-escalation, oil is trading based on the duration of the war, not just headlines. Any direct damage to oil infrastructure or a prolonged conflict could force markets to quickly reassess the price,” emphasized Phillip Nova analyst Priyanka Sachdeva.
Industry experts note that the current conflict has already led to a loss of about 11 million barrels of oil per day for the global market.
The International Energy Agency characterizes the current crisis as more severe than the oil shocks of the 1970s and the consequences of past energy wars.
Macquarie Group experts forecast two possible scenarios depending on the duration of the hostilities.
If the conflict begins to subside in the near future, prices will drop rapidly, though they will remain higher than pre-war levels.
However, analysts warn of a potential catastrophic scenario if the war drags on until mid-summer.
In that case, the price of “black gold” could soar to $200 per barrel, posing a critical challenge to the global economy.
Currently, the largest consumers in Asia are forced to adapt to the instability by drawing on their own strategic reserves.
Pressure on the global energy market is intensifying every day, forcing countries to reassess their demand and consumption levels.
As a reminder, oil prices have remained above $100 following the resumption of Iraqi supplies.
Oil prices also fell sharply amid expectations of a ceasefire in the Persian Gulf.
