Oil prices have dropped sharply, falling by more than 13.5%, with Sky News reporting that Brent crude—the global benchmark—is now trading at around $94 per barrel.
However, production has slowed significantly in key oil-producing countries in the Middle East, and it will take time for output to fully recover. As a result, supply disruptions are expected to persist in the near term.
This likely explains why the decline in prices hasn’t been even more dramatic. Additionally, after weeks of statements from the Trump administration suggesting an end to the conflict, some market participants remain skeptical about the latest announcements.
Compared to pre-conflict levels, oil prices are still relatively high. Before the United States and Israel launched their attacks on February 28, oil was trading at approximately $72 per barrel. The average price last year stood at $69, while since the beginning of the conflict, prices have consistently exceeded $110.
The news that prices are significantly lower this morning compared to yesterday afternoon is certainly positive. However, as Sky News notes, there is still little reason for celebration at this stage.
