Iran war ceasefire hopes lower oil prices, Digi Mart USA News: Falling oil prices are giving consumers hope after US President Donald Trump declared the military conflict with Iran to be “effectively over.” Trump said the status quo is being maintained at the urging of neighboring countries.
Confidence in an end to the fighting has grown since the US midterm elections earlier last week. Democrats in Congress are considering using the government funding deadline expiring on December 11 to pressure Trump to end the war, as he faces pressure after Republican losses in the congressional elections.
The price of Brent crude, the North Sea reference grade for January delivery, fell to $89.92 a barrel around midday on Tuesday, a drop of 2.9 percent. It was the first time prices have fallen below $90 since August.
Oil prices remain volatile, and they edged up again on Wednesday.
Trump also announced overnight, shortly before the expiration of his ultimatum, that he had reached an agreement with Iran to reopen the Strait of Hormuz. Energy prices fell before US stock markets opened.
Whether consumers will pay less permanently for heating oil and gasoline remains an open question. Analysts are weighing whether measures such as the so-called 12 p.m.
rule, fuel price caps or a fuel tax rebate will still be needed to relieve drivers.
This report is based on a single publisher article and has not been independently verified.
