Global Oil Prices Retreat as Hormuz Shipping Resumes Following US-Iran Talks

Global oil prices have fallen back toward levels seen before the recent Middle East conflict, as shipping through the Strait of Hormuz begins returning to normal following a United States and Iran agreement to resume talks.

Brent crude briefly traded below US$73 per barrel in recent sessions, erasing the price surge that followed the outbreak of fighting. The Strait of Hormuz is a critical route for global oil and gas shipments; traffic through the waterway was severely disrupted after Iran restricted passage during the conflict.

Since the two sides signed a memorandum of understanding earlier this month, more vessels have been moving through the channel as diplomatic efforts continue. Analysts warn, however, that the situation remains fragile, saying any renewed tensions in the Middle East could quickly send oil prices climbing again.

The Bank of Jamaica injected a further US$20 million into the foreign exchange market on Friday in an effort to meet continued demand for United States dollars. The additional intervention followed the central bank's sale of US$30 million on Thursday.

At the end of trading, banks and cambios were selling the US dollar for an average $157.78. The Canadian dollar was offered at $112.08, the pound at $208.41, and the euro at an average $180.11.

On the stock market, the Jamaica Stock Exchange main index advanced by 753 points, while the junior market index gained 55 points. Winners included Stanley Motta, Cargo Handlers, Image Plus Consultants, 138 Student Living, and Proven Group. Losers were led by MPC Caribbean Clean Energy, Sterling Investments US dollar shares, ISP Finance Services, Eply, and The Lab.