US oil prices fall despite ongoing uncertainty with Iran | Business and Financial Issues

The US-Iran peace talks are reducing market volatility but uncertainty is keeping oil prices up, prompting a further recovery.

United States President Donald Trump is offering relief at the pump as US gas prices begin to fall ahead of peace talks despite the ongoing conflict in the Strait of Hormuz.

“THE PRICE OF GAS HAS BEEN CUT.” Trump posted Monday on his social media site, Truth Social.

The average price of a gallon (3.78 liters) of gasoline has dropped to $3.86, according to the American Automobile Association (AAA), which tracks fuel prices every day. That’s down from a mid-May peak of $4.48 and has fallen since Trump announced the reopening of the Strait of Hormuz in mid-June. Prices remain above $2.98 per gallon recorded on February 28, when the United States and Israel launched protests against Iran.

The renewed diplomatic talks between the US and Iran come after days of back-and-forth attacks following Iran’s attack on a cargo ship in the waterway, where about a fifth of the world’s oil is exported.

Uncertainty about the peace deal has disrupted oil supply chains, which could prevent prices from falling further.

Oil prices rose 1 percent on Monday following the latest protests, but analysts said renewed peace talks kept prices from rising.

“The drop came despite a tense week, with new weapons sold between the US and Iran before both sides agreed to end tensions on Sunday, preventing what could have been a sharp rise in oil prices,” Patrick De Haan, head of oil analysis at GasBuddy, said in a statement. “. . . things would not have known.”

Earlier this month, experts told Al Jazeera that, due to the shutdown and shutdown of the steel, even if the peace agreement was in place, it would take several months before the prices returned to the pre-war levels – when the US Strategic Petroleum Reserve hit its lowest level since the Reagan administration.

“His hindsight makes sense, but it does nothing to change the inexorable nature of extinction.” After consuming domestic stores and SPRs (Strategic Petroleum Reserves), the world is now drawing on the US records to get better, to increase the time to restore things after the crisis, “EverCore ISI Research researchers said in a research note published on Monday.

Despite the uncertainty surrounding a permanent ceasefire, companies are still raising tanks. For example, on Monday Saudi Aramco raised its capacity of two million barrels after three similar vessels did the same over the weekend, according to LSEG data.