Brent crude drops below $85 per barrel as geopolitical risks fade and bond yields retreat ahead of the Fed decision.
Oil prices extended their decline, with Brent crude falling below $85 per barrel, as easing Middle East tensions reduced supply disruption fears. The pullback follows a month-long rally driven by escalating geopolitical risks, which have now subsided without major hostilities.
Earlier this month, oil surged to nearly $90 per barrel amid concerns over potential supply disruptions. However, the absence of further conflict has led to a reversal, with prices retreating to levels last seen in early April. The move has also alleviated pressure on bond yields, which had risen in tandem with oil.
Markets remain focused on the Federal Reserve’s policy decision tomorrow, with traders weighing the impact of persistent inflation against signs of economic cooling.