Brent Crude Dives 5 Percent as US-Iran Pause Eases Supply Fears

Brent crude oil prices plummeted over 5 percent on Monday after the United States and Iran paused their attacks, alleviating fears of supply disruptions in the Middle East.

The price drop followed weeks of sharp gains that pushed Brent crude close to $100 a barrel amid concerns about potential conflicts affecting global supplies through the Strait of Hormuz.

The renewed hostilities have also influenced economic policy in Nigeria, with the Central Bank citing heightened geopolitical risks as one reason for retaining the benchmark interest rate at 26.5 percent.

Brent crude futures fell $4.89, or 5.05 percent, to $91.89 a barrel by 0009 GMT after briefly dipping below the $90 mark earlier in the session. U.S. West Texas Intermediate (WTI) crude also declined by $4.67, or 5.23 percent, to $84.64 a barrel.