International Oil Prices Dip Amid Iran-US Tensions

Oil Prices Experience Slight Decline

On Friday, international oil prices saw a minor decrease amidst ongoing tensions between Iran and the US-Israel alliance. This drop followed reports indicating that Iran has sent a new proposal for negotiations to the United States, facilitated through Pakistan, raising hopes for a diplomatic resolution.

Current Market Trends

Despite the slight easing in the oil market, prices remain elevated. For July, Brent crude fell by 44 cents, approximately 0.4%, settling at $109.96 per barrel. Meanwhile, West Texas Intermediate dropped by $2.48, or 2.4%, to $102.59 per barrel. Nevertheless, oil prices have shown resilience throughout the week.

Concerns Over Strait of Hormuz

Experts note that supply-related worries persist. Iran has imposed some restrictions on shipping traffic in the Strait of Hormuz, impacting oil supply. Additionally, actions by the US Navy are also limiting Iran's oil exports.

Future Outlook

According to Iran's state news agency IRNA, a new proposal for talks was sent to the US via intermediaries from Pakistan on Thursday. This development suggests a renewed possibility for dialogue between the two nations. Over the week, Brent crude prices could see an increase of about 4.5%, while WTI may rise by approximately 8.9%. On Thursday, Brent crude reached $126.41 per barrel, marking the highest level since March 2022, although prices did decline by the end of the day.