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International Oil Prices Plunge on Prospects of US-Iran Talks

2026-04-15
International crude oil markets tumbled sharply on rising expectations of a resumption of US-Iran negotiations. As of April 14 close, NYMEX WTI crude futures plunged 7.87% to $91.28 per barrel, while London Brent crude futures fell 4.6% to $94.79. During Asian trading hours on April 15, WTI extended losses, briefly falling below $89, with intraday losses widening to 3.71%.
The sharp drop was mainly driven by rising hopes of easing geopolitical tensions in the Middle East. On April 14, US President Trump hinted that Washington and Tehran might restart talks in Pakistan, and the White House confirmed plans for a second round of negotiations. Previously, amid shipping disruptions in the Strait of Hormuz and US port blockades against Iran, international oil prices had surged more than 55%, briefly topping $100 per barrel. As negotiation prospects improved, geopolitical risk premiums faded rapidly, with markets expecting oil prices to retreat toward the $80 range.
Falling oil prices directly ease global inflationary pressures. A Citi report noted that oil costs now account for 4.2% of global GDP, near levels seen during the 1970s oil crisis. Lower energy prices benefit airlines, logistics, manufacturing and other energy-intensive sectors, with several European countries planning energy tax cuts to stimulate growth. However, analysts warned that a collapse in talks or renewed conflict could trigger a quick rebound, leaving the market highly volatile in the short term.

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