Oil prices once fell nearly 20%, analysts say the Federal Reserve may cut interest rates after the conflict ends

On April 8th, according to CCTV Finance, along with the news of a two-week ceasefire, market concerns over the Middle East military conflict significantly eased, with international oil prices dropping nearly 20% at one point. During a new trading day starting on the evening of the 7th, the price of New York crude oil futures fell by nearly 20%. After the US and Israel launched attacks on Iran in late February, shipping through the Strait of Hormuz was almost completely disrupted, causing the price of New York crude oil futures to surge from below $70 per barrel to over $110 per barrel in early April.

Additionally, boosted by the news that the US and Iran agreed to a conditional two-week ceasefire, gold and silver prices reversed from decline to a sharp rise on the 7th. June gold futures on the New York Mercantile Exchange rose above $4,800 per ounce, with an increase approaching 4%; May silver futures rose by over 6.5%, surpassing $76 per ounce.

After the ceasefire announcement, the dollar weakened, and falling oil prices supported an increase in gold prices. Market participants believe that if the conflict ends, the Federal Reserve may consider cutting interest rates before the end of the year, which would also be favorable for gold prices.