(MENAFN) Oil rates experienced a decline on Monday due to uncertainty surrounding the timing of interest rate cuts by the US Federal Reserve and profit-taking following last week's surge to five-month highs.
At 10:33 AM local time (0733 GMT), the international benchmark Brent crude traded at USD89.94 per barrel, marking a 0.56 percent decrease from the previous trading session's closing price of USD90.45 per barrel. Similarly, the American benchmark West Texas Intermediate (WTI) traded at USD85.14 per barrel at the same time, reflecting a 0.61 percent drop from its previous session's closing price of USD85.66 per barrel.
The recent surge in oil prices to five-month highs was fueled by concerns over global oil supply due to escalating tensions in the Middle East. These concerns were further exacerbated by a missile strike on the Iranian Consulate in Damascus, which resulted in the death of a high-ranking commander of Iran's Islamic Revolutionary Guard Corps and six other officers on April 1. The incident heightened tensions in the region, which hosts crucial energy supply routes.
In response to the attack on the Iranian Consulate, Iran's Islamic Revolutionary Guard Corps launched a barrage of drones and missiles at Israel late on Saturday. However, diplomatic efforts to ease tensions between Iran and Israel have led to a slight reduction in oil prices.
US Secretary of State Antony Blinken emphasized the US's stance on avoiding further conflict in the region during a meeting with foreign ministers from Türkiye, Saudi Arabia, Egypt, Jordan, and the UK to address the situation.
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