The prices of oil across the world took a steep downward plunge today and for the first time since last summer, the price per barrel of oil has dipped under one hundred dollars.
At the time, it was trading at around $70 a barrel. The cost of energy has jumped as oil and gas supplies from the Middle East have been severely disrupted after Iran threatened to attack ships trying to use the strait in retaliation to US and Israeli airstrikes.
In a social media post on Tuesday evening, US President Donald Trump agreed to suspend the bombing and attack of Iran for a period of two weeks.
Despite the conflict, some ships have passed through the Strait of Hormuz, although far fewer than usual.
The analysts believe that due to this ceasefire, the oil tankers that were stuck around the strait may now move on and that the overall situation of global markets might see an easing if only in the short term.
Major stock indexes in the Asia-Pacific region rose on Wednesday morning. Japan’s Nikkei 225 gained by 5 per cent while South Korea’s Kospi jumped by nearly 6 per cent. Hong Kong’s Hang Seng was up by 2.8 per cent, while the ASX 200 in Australia gained 2.7 per cent.
