Oil prices fell for the second day in a row in the international market after US President Donald Trump hinted at a possible peace deal with Iran.
According to Reuters, the price of Brent crude fell to $1.69 per barrel, or $1.5.18 per barrel. The previous day, the price fell by about four percent. At the same time, the price of oil in West Texas Intermediate (WTI) fell by $1.67 per cent, or $1.60.
On Tuesday, Trump said the U.S. military operation to keep shipping in the Strait of Hormuz would be temporarily suspended. He pointed out that Washington is heading for a possible deal with Iran, although no details have been released.
According to analysts, the announcement has led to a slight decrease in tensions in the Middle East. As a result, the oil-laden vessels stranded in the Gulf region are likely to start moving slowly and the supply to the market is likely to increase.
However, the uncertainty is not complete. Experts believe that the supply of supplies may take time to normalize even if possible contracts are possible. Trump said the U.S. naval sanctions at Iranian ports would remain in place, which could still put pressure on the supply situation.
According to market sources, crude oil reserves fell in the third week of the United States. Stocks fell to about 8.1 million barrels in the week ending May. At the same time, the stock of petrol and other fuels has also decreased significantly, which has increased the pressure on the global market.