Global oil prices remain unstable as Brent crude fell below $110 per barrel after briefly rising above $120 the day before.
The sharp swings are mainly linked to tensions involving Iran and the United States, as well as concerns about energy supply routes through the Strait of Hormuz a key passage for global oil shipments.
This narrow waterway is one of the world’s most important “chokepoints” for energy. Any disruption there can quickly push prices up by limiting supply and increasing transport costs.
Although prices dropped slightly due to profit-taking after the previous spike, the market remains tense. Traders are closely watching whether oil and gas flows will return to normal, or if ongoing military and political tensions will cause further disruptions.
Even with the recent dip, the risk of higher prices is still present. Ongoing uncertainty about the conflict, global demand, and supply levels continues to drive sudden and unpredictable price changes.
In short, while prices have eased for now, the global energy market is far from stable.
Source: AA
