Brent Crude Set for Largest Weekly Decline Since 2020 Amid Geopolitical Shifts
Brent crude oil is on track for a 16% weekly decline, marking its steepest percentage drop since the COVID-19 pandemic and its largest absolute fall in LSEG data since 1988. The price slide follows US midterm election results that sparked hopes of de-escalation in the conflict between Israel and Iran, potentially increasing regional crude exports. This geopolitical shift is compounded by a broader market sell-off in technology stocks. Despite the downward trend, prices saw a slight rebound on Friday due to ongoing maritime security concerns. Attacks on vessels in the Gulf and the Strait of Hormuz continue at near-record paces, providing a price floor by maintaining fears over supply disruptions. Analysts note that while the market is loosening toward an oversupply state, volatility remains high as traders await clarity on potential diplomatic deals involving Iran.