Oil price dives as US and Iran pause attacks - BBC

What the report says

BBC News reported that oil prices dropped sharply after signs of a pause in attacks between the United States and Iran raised expectations that the conflict could ease. Brent crude, the international benchmark, fell by more than 9% at one stage to $87.59 a barrel, reversing part of a recent surge that had taken prices above $100 last week.

According to the BBC, the US ambassador to the United Nations said strikes on Iran had stopped for a second consecutive night to allow room for diplomacy. An Iranian army spokesperson also said Tehran had suspended what it described as retaliatory attacks in the region. The conflict had previously driven energy prices higher after the Strait of Hormuz, a major route for oil and liquefied natural gas shipments, was effectively shut.

The report said a June memorandum of understanding between Iran and the US had temporarily halted military operations and reopened the strait, helping oil return to around $70 a barrel. But the ceasefire’s collapse earlier this month renewed fears over global supply, while attacks by Houthi militia in Yemen on Red Sea oil tankers added concern about alternative export routes.

BBC also cited warnings that energy market uncertainty remains significant. Susannah Streeter of Wealth Club said investors were cautious about whether negotiations would produce a durable breakthrough. The report noted that higher oil and gas prices can feed into petrol, diesel, food costs and inflation, influencing central bank interest-rate decisions in Europe and the UK.