The price per barrel of Brent crude oil fell back below $90 after a global market surge. Brent dropped 6.15% in yesterday's trading, closing at $89.15, and continued to hover near $89 today.
This marked the first time Brent tested below the $90 threshold since April 17. The move indicates a significant easing of the risk premium that had risen in recent weeks due to developments centered in the Middle East.
Expectations on US-Iran Front Pull Prices Down
Earlier this week, rising tensions between the US and Iran pushed oil prices up to $98 on Monday. However, subsequent signals reversed this trend.
US President Donald Trump stated that negotiations were nearing conclusion and that an agreement including the Strait of Hormuz was close. The White House's decision to postpone planned attacks on Iran further strengthened the downward trend.
These developments softened investors' risk perception, easing the upward pressure on oil prices caused by concerns over war, sanctions, and supply.
Fuel Price Reduction Expected
The sharp decline in oil prices has also shifted expectations for domestic fuel prices. Industry experts note that if Brent remains at or below $90, reductions at the pump could be considered.
As of June 12, in Istanbul's European side, gasoline is sold at 62.99 lira per liter and diesel at 66.36 lira per liter. A downward trend in pump prices has been noticeable since mid-May.
Significant Volatility Experienced This Year
Brent crude opened the year at $61 per barrel and surged to $119.50 in March amid Middle East developments. From early April, ceasefire and negotiation processes prevented sharper price increases.
Still, delays in a final agreement kept oil prices around $100 for an extended period. The recent drop has strengthened expectations that this balance may shift again.
Focus on the Strait of Hormuz
Factors limiting the price shock included weakening demand in China, increased US oil exports, the release of strategic reserves, and the commissioning of alternative pipelines in the Middle East.
Markets are now focused on whether the Strait of Hormuz, through which about 20% of the world’s oil supply passes, will fully reopen. Developments in this corridor are expected to be decisive for oil and fuel prices in the coming days.
