Oil prices drop on Iran ceasefire and China summit

Brent Crude Oil fell 1.4% to $106.30 as a fragile Middle East ceasefire and upcoming trade talks cooled a three-day rally. Prices have remained above $100 since United States and Israel military actions against Iran began in late February. The market remains reactive to supply threats in the Strait of Hormuz, where 20% of global energy flows normally pass.

West Texas Intermediate dropped $1.41 to $100.77. Priyanka Sachdeva, senior market analyst at Phillip Nova, said traders are struggling to establish a clear direction despite ongoing supply disruption concerns. Sachdeva added that any direct threat to supply flows could quickly revive upside momentum.