Global oil prices retreated in early trading Sunday, sliding further from a two-month high, after the United States and Iran refrained from launching military strikes in the Persian Gulf for a second consecutive day.
Brent crude for September delivery fell 4.9% to $92.02 shortly after trading resumed, extending a 3.9% decline recorded on Friday. The international benchmark had briefly touched $102 a barrel last week, roughly $30 above where the most actively traded contract stood earlier in the month and its highest level since May.
The month-long surge was driven by intensifying conflict in the Middle East and fears that a return to full-scale war would further disrupt the global flow of crude.
At the center of the market’s anxiety is the Strait of Hormuz, the narrow waterway off Iran’s coast through which about a fifth of the world’s oil typically exits the Persian Gulf. Shipping traffic through the passage has been largely halted since the United States and Israel struck Iran in late February, forcing producers to seek alternative export routes.
Those alternatives remain under strain. Last week, attacks struck Saudi oil tankers that had been using the Red Sea to leave the region, tightening supply further and pushing prices upward. When less crude reaches customers, both oil and downstream fuel costs climb.
The effects have been felt sharply in consumer markets. In the United States, the average price for a gallon of regular gasoline stood at $4.11 on Sunday, up from $3.90 a month earlier and $3.15 a year ago, motor club AAA reported.
Aviation has also borne significant costs, with jet fuel prices climbing steeply as carriers absorb higher input expenses. The trend has revived concerns among airlines already contending with elevated operating costs, echoing the pressures that weighed on transatlantic travel demand earlier this year.
The wider conflict has repeatedly rippled through energy markets since the start of the year, and the latest surge follows earlier episodes that disrupted daily life and industrial activity worldwide.
The recent pause in hostilities has offered temporary relief, but analysts caution that sustained elevated prices could feed into broader inflation and raise costs across transport, manufacturing and consumer goods.
Whether the calm holds remains uncertain. Market participants are watching the Strait of Hormuz closely, aware that any renewed escalation could quickly reverse the recent declines and send benchmarks back toward triple digits.