Brent crude fell below $90 a barrel on Nov. 10 for the first time since Aug. 30, as easing U.S.-Iran tensions and increased Strait of Hormuz traffic weighed on prices. (Foto: Instagram)
Brent crude, an international benchmark, fell below $90 a barrel on Tuesday, Nov. 10, for the first time since Aug. 30. At 10:34 a.m., it was trading at $89.66, down 2.91% over the previous 24 hours.
The price decline was attributed to easing tensions between the United States and Iran. On Sunday, Nov. 8, President Donald Trump said new U.S. attacks on Iran were highly unlikely. In a phone interview with CNN, he said the war’s end depended on whether Iran signed “a very solid agreement” and that another attack was “highly unlikely” to be necessary.
Another factor reported by international media was an alleged understanding in Washington that Iran could enrich uranium to 3.67%. The United States began the conflict, the report said, arguing that Iran was enriching uranium for nuclear purposes. The reported understanding was not presented as a confirmed agreement.
Increased traffic through the Strait of Hormuz also contributed to the drop in oil prices. The strait is a major global trade route, through which 20% to 25% of the oil consumed worldwide usually passes.
The conflict involving the United States, Iran and Israel completely halted passage through the strait at its most critical points, pushing oil prices higher. The renewed increase in traffic through the route was cited as a factor behind the recent decline.
