Oil prices dip as United States and Iran consider truce
Oil prices just dropped after news that the US and Iran might be working things out.
Brent crude slipped to $94.53 a barrel and WTI fell to $88.07, as hopes for a cease-fire or broader deal grew.
Iran shut Strait of Hormuz
Prices had spiked recently when Iran shut the Strait of Hormuz, a key route for about 20% of the world's oil. That move, plus the US seizing an Iranian ship, ramped up global tension.
Now, with Iran considering peace talks in Pakistan and Kuwait declaring force majeure on shipments, there's hope things could settle down.
Still, if disruptions continue, Citi warns prices could soar to $110 in the second quarter of 2026.
Rising oil costs have already cut oil demand by around 3%, showing just how much these supply routes matter for everyone's wallets.