Following a ceasefire between Iran and Israel, oil prices have dropped significantly, with Brent crude falling by 4% to $69 per barrel. This decline comes after a period of heightened prices due to geopolitical tensions. Analysts, including Matt Britzman from Hargreaves Lansdown, noted that the markets are confident in a de-escalation of conflict, with no attacks on oil facilities and the Strait of Hormuz. The lower prices are beneficial for inflation control, impacting potential decisions on U.S. interest rates. However, experts caution that the situation remains unpredictable and could change quickly.
Despite the turmoil over the weekend, oil prices were quick to shift into reverse - an early signal that markets were betting on de-escalation sooner rather than later.
Brent crude had rallied nearly 20% in the past month as a war premium was attached to the price of oil, which is now being unwound.
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