Crude Oil Prices Decline on Potential Iran Conflict Resolution

New York. Crude oil prices have decreased in the world market. Oil prices have fallen after US President Donald Trump said the Iran war would end very soon. 

In London-based ICE Exchange's Comex division, the international benchmark Brent crude oil futures decreased by 88 cents, or 0.8 percent, to $110.40 per barrel. Meanwhile, the price of the US benchmark West Texas Intermediate also decreased by 67 cents (0.6 percent) to $103.48 per barrel.

As geopolitical tensions in the market showed signs of easing, investors reduced the risk premium on crude oil prices. After continuous fluctuations in the oil market in recent days, crude oil prices fell on Wednesday. The market research organization LSGE's senior oil research analyst Imril Jamil said that the market tension has decreased due to signs of a potential agreement to end the ongoing war between the US and Iran. 

He said that investors are currently evaluating geopolitical outcomes, which has temporarily reduced prices. However, he warned that even if an agreement is reached, prices may rise again as the supply of oil is unlikely to return to pre-war levels immediately.

Tensions and military actions between the US and Israel have caused significant instability in the global energy market in recent months. Meanwhile, US Vice President JD Vance also stated that there has been progress in talks between the US and Iran. Immediately after his statement, prices of both benchmarks in the oil market fell by nearly $1 on Tuesday.