Oil falls 3% and drops below $100 due to possible US-Iran dialogue

WHAT HAPPENED

Brent oil fell more than 3% to around $96.70 per barrel, due to the possibility of resuming talks between the United States and Iran. Before the conflict, it cost about $73.

WHY IT MATTERS

The dialogue reduces the fear that Iran will block the Strait of Hormuz, through which nearly one-fifth of the oil transported by sea passes. If crude prices drop, transportation, airlines, logistics, and gasoline may become cheaper, although with a few weeks' delay.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, it's a sign of relief, not the end of the problem: oil remains well above its pre-conflict level. In your pocket, gasoline and airline tickets could drop later, but not immediately.