A decrease of more than one percent in the price of oil in the world market

Although Adam Smith’s invisible hand (supply and demand) is the main determinant of oil prices in the world market, political tensions have now become one of the biggest challenges for the world economy. The war between Russia and Ukraine and Moscow’s sanctions, US sanctions against Iran and Venezuela as major oil exporters; And the latest case, the Gaza war and the concern of its expansion to the entire region is one of the most important political tensions in the world that has affected the price of black gold.

According to the Reuters news agency, the price of oil in the energy market today (Tuesday) witnessed a decrease for the second day in a row due to the continuation of peace talks between the Israeli regime and Hamas in Cairo and hopes in this regard.

Accordingly, the price of Brent North Sea oil decreased by 1.1% to 89 dollars and 42 cents. US West Texas Intermediate (WTI) crude oil was traded at 85 dollars and 23 cents per barrel with a decrease of 1.4%.

Reuters writes: The concern about the escalation of tensions in the West Asia is extremely high now. The threat of Iran’s Islamic Revolutionary Guard Corps Navy to close the Strait of Hormuz if necessary, where a fifth of the world’s crude oil passes daily, is a part of these tensions.

Turkey has recently announced that it will suspend the export of some items to Israel until a ceasefire is reached. Airplane fuel is one of Ankara’s embargoed goods against Tel Aviv.

However, the peak of tensions in the West Asia is related to the Gaza war, and now all eyes are on the results of the peace talks between the Israeli regime and Hamas with the mediation of Qatar and Egypt.