Global oil prices have fallen significantly as signs of a temporary halt to the tit-for-tat military attacks between the United States and Iran emerge, at a time when the US administration has confirmed that it is giving the diplomatic track an additional chance before taking any new military steps, according to DR.
Potential impacts on fuel prices in Denmark
Although the source did not address fuel prices within Denmark, recent developments in global oil markets may impact Danish consumers in the coming days, just as Denmark recorded the highest diesel sales figure in Europe last week.
Petrol and diesel prices in Denmark are heavily dependent on the price of Brent crude, along with refining and transportation costs, taxes and currency exchange rates, so any sustained drop in global oil prices could ease pressure on fuel prices if calm continues in the Middle East.
On the other hand, analysts warn that any resumption of attacks or new disruption to supply routes, particularly through the Strait of Hormuz, could push prices up again, as happened in recent weeks when Brent crude surpassed the $100 per barrel mark, putting upward pressure on gasoline and diesel prices in Denmark and several other European countries.
Oil prices fell after the military confrontation subsided.
Oil prices fell sharply as markets opened, after military operations between the United States and Iran appeared to have entered a phase of temporary calm.
Brent crude, the global benchmark for oil prices, fell 4.9% to $92.02 a barrel, following another drop of 3.9% on Friday, according to the Associated Press.
Brent crude had briefly risen last week to $102 a barrel, its highest level since May, before falling back again.
The DR report noted that oil prices saw significant increases this month as a result of escalating fighting in the Middle East, before the recent relative calm led to a decline in prices.
US strikes have stopped for several days
Returning to the main reason behind the change in fuel prices, which is the American-Israeli-Iranian war, the US Central Command (CENTCOM) did not announce any new attacks targeting Iran during the weekend, after announcing continuous military operations that lasted for thirteen consecutive nights, according to DR.
The last announced US attack was on Thursday, July 23, and since then no announcements of new operations have been made.
Ritsau quoted AFP as reporting a statement by Iranian military spokesman Mohammad Ekraminia, who said on Sunday that the US attacks continued until two nights ago, but that the United States had halted its attacks during the past two nights.
The spokesman also added that Iran had not carried out any additional attacks during the same period.
Iran has previously responded to US strikes by targeting US bases in several Gulf states, and the latest escalation represents the biggest return to hostilities since the signing of the framework agreement between the two sides in April, according to the source.
Washington confirms its military readiness but gives negotiations a chance
DR noted that several American media outlets also observed a temporary halt in the attacks, while the US ambassador to the United Nations, Mike Waltz, confirmed during an interview with Fox News Sunday that US President Donald Trump had decided to give the negotiating track an additional chance.
Mike Waltz said the president made it clear that the United States is prepared to act immediately if necessary, and that it is sending more military capabilities to the region, but is giving negotiations some time.
He added that the Sultanate of Oman, Iran, and a number of other mediators have been involved in contacts and negotiations at various levels, from the highest political levels down to the technical levels, during the past weeks, and especially during the last few days.
Iran considers the halt a victory
The report also stated that CNN indicated that Iranian officials tried to present the apparent halt in US attacks as a victory for Iran.
The network added that an Iranian military spokesman said that the United States had failed to weaken Iran’s defense capabilities, and that it was now suffering from what he described as ”strategic fatigue.”.
A US report recommends halting bombing near the Strait of Hormuz.
In contrast, Axios noted that high-ranking US Admiral Brad Cooper recommended, according to the report, a complete halt to bombing operations in the vicinity of the Strait of Hormuz, considering that these operations had reached the maximum of their military effectiveness.
Iran warns of renewed escalation if attacks resume
The report concluded by noting that Iranian military spokesman Mohammad Ekraminia, in statements to Iranian state television carried by the Ritzau news agency, confirmed that the war would escalate further if the United States resumed its attacks against Iran.
According to DR, the current calm is not an indication of the end of the crisis, but rather represents a temporary pause amidst ongoing diplomatic efforts, while the possibility of a return to military escalation remains if negotiations between the two sides fail.
