Brent crude falls below $90 as geopolitical risk premium fades, but gas station price transmission lags

⑴ Analyst Gregory Schmidt pointed out that oil prices have dropped sharply in recent days, with Brent crude falling below $90 per barrel on Tuesday for the first time since August.⑵ As the situation in Iran continues to drive up fuel costs, energy prices have placed a heavy burden on consumers.⑶ However, as market expectations for progress in US-Iran peace talks have strengthened, the geopolitical risk premium embedded in oil prices over the past few weeks has begun to fade.⑷ Nevertheless, this change will take some time to be reflected at gas stations, as changes in fuel prices usually lag behind changes in oil prices.