Prakash Kafle/Kathmandu. Global oil prices have experienced a sharp decline following reports of potential de-escalation in the conflict between Israel and Iran. After weeks of soaring prices due to supply disruptions and the closure of the Strait of Hormuz, markets reacted positively to recent diplomatic signals. Israeli Prime Minister Benjamin Netanyahu recently stated that the war “could end much faster than people think,” suggesting that the conflict is entering its final stages.
Additionally, reports of secret negotiations and a “relief sell-off” in the commodities market have pushed Brent crude prices down by nearly 10-11%, settling around $85 per barrel from their recent highs. While the situation remains volatile, the prospect of reopening key shipping lanes and a potential ceasefire has provided a much-needed breather to the global economy, lowering fears of a long-term energy crisis.
