Global oil prices decline as market fears ease

Global crude oil prices continued to fall as easing geopolitical concerns and improving market sentiment weighed on energy markets, the3 24NewsHD TV channel reported on Sunday.

According to market data, West Texas Intermediate (WTI) crude oil declined by around 2.5 percent to $69 per barrel, while Brent crude dropped by more than 3 percent to $71 per barrel. The price of UAE Murban crude also fell by approximately 2.5 percent to $66 per barrel.

The latest decline follows a broader downturn in global energy markets.

On June 26, oil prices had already fallen by more than three percent after fears surrounding shipping routes in the Strait of Hormuz eased.

Investor confidence improved after a cargo vessel reportedly targeted near the strategic waterway resumed its journey safely, with its crew, cargo and vessel remaining unharmed. The development reduced concerns over potential disruptions to global oil supplies and maritime trade.

Analysts noted that although the incident briefly unsettled shipowners and market participants, commercial traffic continued through the Strait of Hormuz, helping calm markets.

The decline in oil prices came amid broader weakness in global financial markets. Stock indexes across Europe and Asia retreated sharply as concerns emerged over the sustainability of the artificial intelligence-driven rally that had pushed technology shares to record highs.

Technology stocks came under pressure after major companies announced price increases linked to rising AI-related production costs. The move raised fresh questions among investors about corporate valuations and the pace at which companies will generate returns from massive investments in artificial intelligence.

Market experts said investors are becoming increasingly selective in their approach to AI-related investments, contributing to volatility in global equity markets.

Despite the weakness in stock markets, lower oil prices may provide some relief to energy-importing countries by reducing fuel import costs and easing inflationary pressures.