Brent crude oil falls by over 4% in the context of easing US-Iran relations and an abundant global supply.

The price of oil recorded a significant drop of over 4% on Thursday, with Brent falling to $63.69 per barrel, following the easing of tensions between the US and Iran. Traders have lowered their expectations regarding military action against Iran, a major oil producer that contributes about 3% to global oil production.

Additionally, Iran controls the Strait of Hormuz, a strategic point for the transport of 30% of the world's oil. Arab governments believe that diplomatic efforts have contributed to reducing tensions in the Gulf. Furthermore, a report from the US Energy Information Administration showed an increase in oil inventories in the US, which heightened the sentiment of abundant supply in the market. Traders also expect Venezuela to resume its oil exports after a naval blockade imposed by the US.