West Texas Intermediate (WTI) crude oil prices fell to $73.36 per barrel on Thursday, marking a three-month low, according to FX Street. This decline comes amid growing optimism over a potential peace agreement between the US and Iran, alongside news of the Strait of Hormuz reopening.
The drop has pushed WTI toward a weekly loss exceeding 10%, reflecting market sentiment that improved geopolitical stability could ease supply concerns in the region. The reopening of the Strait of Hormuz, a vital oil shipping route, further contributed to easing tensions and lowering risk premiums embedded in oil prices.
For Japanese markets, where energy imports are critical, this downward pressure on crude prices may provide some relief amid ongoing inflationary challenges, potentially influencing FX and equity sectors linked to energy costs.