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Oil Prices Drop 4% at Settlement as Strait of Hormuz Sees Vessel Passage

Doha: Oil prices fell about 4 percent at settlement on Tuesday as two vessels passed through the Strait of Hormuz and the United States said a cease-fire with Iran remained in effect despite exchanges of fire between the two sides. According to Qatar News Agency, futures for Brent crude dropped $4.57, or 4 percent, to settle at $109.87 a barrel, after jumping about 6 percent in the previous session. US West Texas Intermediate crude fell $4.15, or 3.9 percent, to $102.27 a barrel. The passage of the two vessels through the Strait of Hormuz, a critical chokepoint for global oil shipments, provided some relief to market concerns about potential disruptions in the region. The United States reiterated that the cease-fire with Iran was still in effect, which helped to ease immediate fears of further escalation. The decline in oil prices followed a previous session where Brent crude had seen a surge of about 6 percent. Market analysts are closely watching developments in the region, as any significant disruptio n could lead to volatility in oil prices. The situation remains fluid, with ongoing monitoring of the geopolitical tensions in the area.

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