Web Desk: Global oil and gas prices fell sharply after reports of possible negotiations between Iran and the United States raised hopes of easing tensions and improving supply conditions.
Benchmark Brent crude dropped nearly 4% to around $110 per barrel. Meanwhile, West Texas Intermediate fell by a similar margin to about $102 per barrel. In addition, Murban crude declined roughly 2% to $105 per barrel.
Traders reacted quickly to signs that diplomatic progress could reduce risks to energy supplies. Expectations of lower geopolitical tension helped ease concerns over disruptions, particularly around the Strait of Hormuz, a key route for global oil shipments.
At the same time, global gas prices also dropped by about 4%, reflecting broader optimism in energy markets. Analysts said the potential for renewed dialogue between Washington and Tehran could stabilize supply flows if tensions continue to ease.
Meanwhile, Iraq moved swiftly to capitalize on the changing market. As OPEC’s second-largest oil producer, the country announced significant discounts to increase exports and attract buyers.
According to the State Organization for Marketing of Oil, Iraq is offering discounts of up to $33.40 per barrel on Basra Medium crude loaded in early May. For shipments between May 11 and May 31, the discount will stand at $26 per barrel. Basra Heavy crude is also being sold at reduced prices, with discounts close to $30 per barrel.
Iraq’s pricing strategy aims to strengthen its position in an increasingly competitive market. Lower prices could help secure buyers at a time when uncertainty around shipping routes remains.
Analysts noted that concerns about transport through the Strait of Hormuz continue to influence trade decisions. However, improving diplomatic signals between Iran and the United States have already started to reshape market sentiment.
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