Amidst the ongoing tension in the Middle East, the sudden fall in oil prices has attracted everyone’s attention. Crude oil prices fell by about 6% on Thursday morning, raising questions about whether the situation is going to improve. Generally, when war or tension increases, oil becomes expensive, but this time the opposite was seen.
The main reason for the fall in oil prices is the news of possible talks between America and Iran. According to reports, America is applying diplomatic pressure to end this conflict. Besides, efforts are also going on for a month long ceasefire. These news gave hope to the market that the tension may subside soon, due to which the oil supply will not be affected. The effect of this was that American crude oil (WTI) fell below $ 88 per barrel, while Brent crude also slipped below $ 95 per barrel.
Along with talks, military movements also
However, the picture is not completely clear. On one hand, efforts for peace are going on, while on the other hand, news of America sending troops has also come to light. It is being said that preparations have been made to deploy thousands of soldiers in this area. Due to this there is confusion in the market. Will the war end or will it escalate?
Israel’s stance still tough
Israel’s stand in this entire matter is also important. Israel has clearly indicated that it is in no mood to retreat and its military campaign will continue. According to reports, Israel does not trust the ceasefire plan and feels that Iran will not accept it easily. This fall in oil prices definitely gives a sign of hope, but the situation is still uncertain. If negotiations are successful then prices may fall further. At the same time, if tension increases, oil may become expensive again.
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