Oil Prices Squeezed Between Peace Hopes and Iran Escalation Risk

Oil prices have crashed about 20% from the late-October peak of $118 per barrel, weighed down by hopes of sustainable de-escalation in the Middle East and the Russia-Ukraine war. For months, traders and hedge funds have often bet on a resolution of the conflicts, only to reactivate buying when talks fall apart. As U.S.-mediated talks between Ukraine and Russia are underway, there are no signs of a breakthrough in either the conflict in Europe or the U.S.-Iran standoff, despite messaging via Qatar. Oil prices have slipped as crude oil flows from…