Despite renewed conflict and tension in the Middle East, Iran's announcement that diplomatic relations with the United States are continuing has brought some relief to the international oil market. Due to this, crude oil prices fell slightly in the global market on Tuesday. However, the ongoing instability in the Middle East and the potential threat of the Houthis are still seen as a major risk for the global energy market.
On Tuesday (July 21), the price of Brent crude, one of the main benchmarks of crude oil in the international market, fell by 35 cents or 0.4 percent to 88.87 dollars per barrel. Earlier on Monday, the price of Brent exceeded 90 dollars per barrel. This was the highest price for Brent oil in more than a month.
On the other hand, US West Texas Intermediate or WTI crude oil prices were almost unchanged on Tuesday. The price of WTI for delivery in September was $82.47 per barrel.
According to market analysts, news of a possible mediation initiative between Iran and the United States and the continuation of diplomatic contacts between the two countries provided temporary relief to the oil market. This has eased investors' fears about supply and oil prices have also fallen slightly in the international market.
However, the situation in the Middle East is still not completely stable. Uncertainty remains in the global energy market due to ongoing conflicts in the region, potential supply disruptions and threats from the Houthis. As a result, even if there is a slight change in the situation, the price of crude oil in the international market may increase rapidly again.
According to the Reuters report, the Middle East conflict and geopolitical tensions are still one of the biggest risks for the oil market. As a result, the international market participants are keeping an eye on how effective the diplomatic activities of Iran and the United States are and in which direction the situation in the Middle East turns.
