Oil slips below $90 after months

Global oil prices have fallen below $90 a barrel for the first time since August, as expectations of an end to the Iran war and easing tensions in the Middle East eased concerns over supply disruptions.

In the latest trading session, Brent crude, the international benchmark, fell 3.1% to $89.66 a barrel.

Meanwhile, West Texas Intermediate (WTI), the US benchmark, declined 2.3% to $84.86 a barrel.

Oil prices have recorded significant declines over several recent trading sessions. Market analysts attribute the fall largely to growing hopes that the ongoing conflict involving Iran could come to an end and tensions in the Middle East may ease.

On Monday, US President Donald Trump said progress was being made towards ending the war with Iran and that momentum was building towards a possible agreement. However, he did not rule out the possibility of further military strikes.

The Middle East is a crucial region for global energy supplies. Around one-fifth of the world’s total oil consumption passes through the Strait of Hormuz, making it one of the most strategically important shipping routes for the global oil market.

The conflict had disrupted shipping through the waterway, raising concerns about international oil supplies and pushing prices higher.

Now, hopes of an end to the war have raised expectations of improved supply conditions and a resumption of normal oil exports from the Middle East.

These expectations have put downward pressure on global oil prices.

However, uncertainty over the possibility of renewed military strikes and the security of the Strait of Hormuz could keep the oil market volatile in the coming days.