Brent prices fall over 5% as investors bet on a potential Iran conflict resolution, easing stagflation concerns and boosting markets.
Brent crude oil prices slid below $100 per barrel, trading at $97.87 after closing last week at $103.54, a decline of over 5%. The drop follows growing optimism about a possible deal to end the Iran conflict, reducing fears of prolonged supply disruptions in the Strait of Hormuz.
Last week, Brent fell 5.24% to $103.54, while WTI dropped 8.37% to $96.60. The decline in oil prices eased investor concerns about stagflation, supporting equities and bonds globally. However, prices briefly dipped to $96.02 before rebounding on reports of fresh U.S. and Israeli airstrikes in southern Iran.
Markets reacted positively to the prospect of a reopened Strait of Hormuz, which could alleviate supply constraints. The shift in sentiment also reflects lower inflation expectations, contributing to broader market stability.