Oil Prices Drop Below $100 as Ceasefire Unwinds 'War Premium'

Oil prices maintained their position below the $100 per barrel threshold as markets continued to digest the temporary ceasefire agreement between the U.S. and Iran. This downward trend reflects the ongoing unwinding of the 'war premium' previously factored into Brent and WTI futures pricing. Adding to the market dynamics, the latest EIA report revealed an increase in U.S. crude oil inventories, providing further bearish pressure on prices. However, the report also noted a decrease in gasoline and distillate stocks, suggesting resilient demand for refined products despite the crude build. Analysts identify the $80 level as a critical technical support floor as the market balances geopolitical de-escalation with fundamental supply data. Volatility is expected to remain high as investors monitor both the sustainability of the truce and the shifting U.S. inventory landscape.