Source The Hindu
Global oil prices dropped below $90 per barrel on Tuesday after former U.S. President Donald Trump suggested that the ongoing conflict between Israel and Iran could end soon, raising hopes of reduced tensions in the Middle East. The fall in prices brought relief to global markets that had been rattled by fears of supply disruptions.
Brent crude, the global oil benchmark, slipped sharply while U.S. West Texas Intermediate also declined significantly. The drop came after oil prices had earlier surged close to $120 per barrel amid escalating military tensions in the region.
Energy markets had been on edge due to concerns that the conflict might disrupt shipping routes through the Strait of Hormuz, a crucial passage for global oil trade. Any disruption in this region could significantly impact global supply and push fuel prices higher worldwide.
Trump’s remarks that the conflict could “end soon” helped calm investors and triggered a wave of selling in oil markets, leading to the sharp price correction. Analysts said traders are cautiously optimistic but remain alert to further developments in the region.
Lower oil prices also provided a boost to global stock markets. Aviation and transport companies saw gains as fuel costs play a major role in their operating expenses. In countries like India, cheaper oil can help control inflation and reduce pressure on fuel imports.
Meanwhile, in India’s political developments, veteran leader Sharad Pawar was among 27 candidates elected unopposed to the Rajya Sabha. The uncontested elections took place in several states where the number of candidates matched the available seats.
The developments in both global energy markets and domestic politics formed key highlights of the day as governments and investors continue to monitor the evolving geopolitical situation closely.
