Oil prices plunge below $73 despite continued US-Iran strikes near Hormuz
Key Facts
After weeks of escalation and sharp gains, the oil market outlook reversed as Brent crude fell to $72.57 a barrel, recording its steepest weekly drop in a month, before rebounding 0.8% following fresh US-Iran strikes near the Strait of Hormuz, according to market data.
This sharp decline follows Brent trading above $85 last week, reflecting a reassessment of risk by investors despite additional strikes carried out by US Central Command against multiple Iranian targets near Hormuz. West Texas Intermediate rose 1.3% to $70.11 in recent trading sessions, indicating mixed market reactions.
Investors are closely watching developments in the Strait of Hormuz, where fresh strikes signal continued confrontation, yet the price decline may reflect concerns over weakening demand or rising supply. Analysts expect sustained volatility, with markets remaining at the mercy of breaking news and no major economic catalysts on the horizon.
Latest Updates · 2
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In related context, Asian markets traded mixed in choppy sessions amid renewed doubts over the AI sector and escalating geopolitical tensions with Iran. Meanwhile, Gulf markets also traded mixed as US-Iran attacks continued, adding to investor uncertainty.
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Update: On Sunday, oil prices continued to rise and U.S. stock-index futures advanced, according to MarketWatch, as the U.S. and Iran continued trading airstrikes in the Persian Gulf. This escalation renewed fears of an effective shutdown of the Strait of Hormuz, threatening global oil supplies and driving investors toward safe-haven assets.