FX.co ★ Oil Falls by Over 4%

WTI crude oil futures experienced a decline of over 4%, settling at $69.5 per barrel on Monday. This movement partly reversed Friday's significant 7% increase and occurred amidst easing concerns of a potential wider conflict between Israel and Iran. Recent reports suggest Iran is open to de-escalating tensions and resuming nuclear discussions, contingent upon the United States maintaining a neutral stance. Tehran is believed to have communicated this through Arab intermediaries to both the US and Israel. This more conciliatory approach has allayed market anxieties, prompting investors to retract some of their risky positions. Additionally, the flow of vessels through the crucial Strait of Hormuz saw only a slight reduction, with 111 ships recorded on June 15, compared to 116 on June 12. This data indicates minimal disruption to oil supplies, although the strait continues to be a vital passage, accounting for approximately 20% of global oil trade.