Oil Prices Drop 15% on U.S.-Iran Peace Hopes

Oil prices plunged 15% this week, marking one of the steepest weekly declines in recent memory, as traders priced in the possibility of a U.S.-Iran peace deal. Despite ongoing attacks in the Strait of Hormuz, the market sentiment has turned bearish, driven by expectations of diplomatic progress and a narrowing window for continued hostilities. Saudi Aramco further slashed its Asian oil prices by $2 per barrel, reflecting a broader trend of supply-side adjustments. Meanwhile, the U.S. Treasury expanded sanctions against Indian and Turkish entities, intensifying pressure on Iran amid geopolitical easing. The UAE is reportedly exploring a third pipeline route to diversify its energy exports and reduce reliance on the Strait of Hormuz. These developments highlight a shifting landscape where diplomatic efforts and regional strategies are reshaping global energy dynamics.