Brent falls below $80 for the first time in two months following the collapse of Silicon Valley

International benchmark Brent lost 5% today, resuming the gains and sliding below $80 for the first time in two months amid growing concerns about economic recession in the US.

The Silicon Valley collapse saga continues to hurt prospects of US economic activities, with policy tightening and higher interest rates blamed for the collapse. 

Brent Prices

Brent fell 5% to $78.39 a barrel, the lowest since January 9, with a session-high at $83.42. 

Brent rose 1.5% on Friday, the first profit in four days as the dollar loses ground. 

Silicon Valley Bank Collapse

The bank collapsed due to higher US interest rates which hover around September 2007 highs, with the bank failing to cover despots even after selling some of its reduced treasury investments following the Fed's hikes.

Banking experts notice that such a collapse could've been avoided with better risk management for interest rates.

US authorities are attempting plans to reinforce confidence in the banking system and prevent the spread of the infection, with New York authorities already closing the Signature bank, with another on the way.