Oil prices have fallen below $100 per barrel.
On the afternoon of May 6th, world oil prices fell sharply amid renewed hopes of an end to the conflict in Iran. The main driving force behind the market stemmed from news that the US was nearing an agreement with Iran to reopen the Strait of Hormuz and end the conflict.
Specifically, at 6 PM Vietnam time, the price of North Sea Brent crude oil fell 10.8% to $98.04 per barrel, while the price of US West Texas Intermediate (WTI) sweet crude oil fell 12.5% to $89.51 per barrel.
According to Axios, citing two US officials, the two sides are close to agreeing on a memorandum to end hostilities and establish a framework for more detailed nuclear negotiations. The agreement is expected to include a commitment from Iran to halt nuclear enrichment, in exchange for the US agreeing to release billions of dollars in frozen Iranian funds. The sources assert that this is the closest the parties have come to an agreement since the fighting began.
Neil Wilson, an investment strategist at Saxo UK, commented that this information has triggered optimism about a positive shift in the global energy market. As conflict risks lessen, bond yields and the US dollar both fell, reflecting market expectations of resolving inflation risks through an early end to the war.
Analysts predict that market movements in the coming sessions will depend closely on Iran's response. The reopening of the Strait of Hormuz, a shipping lane for 20% of the world's oil and gas, is considered a key factor in easing inflationary pressure and stabilizing the global economy .
Source: https://vtv.vn/gia-dau-xuong-duoi-100-usd-thung-100260506184216233.htm
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