Share to ClassroomOil Drops as War May End
Oil prices fell sharply on Friday. Brent oil may drop 20% in May. That is its biggest fall in years. The US and Iran agreed to extend a ceasefire. A ceasefire means a stop in fighting. Brent fell to about $93a barrel. Gas prices in the US also dropped.
The war began on 28 February. The US and Israel attacked Iran. Iran then threatened ships in the Strait of Hormuz. This sea path carries much of the world's oil. The strait has been closed since. Oil prices jumped to $120a barrel. Now President Trump will make a final decision.
Gasoline still costs much more than before the war. Oil bosses warn that supplies are low. They say oil could pass $150a barrel soon. Trapped ships and sea mines block the strait. Experts say prices may take weeks to settle.
