Oil Prices Crash as US Suspends Air Strikes Against Iran

Oil prices plummeted on Monday to their lowest levels in over a week, as the US suspended its campaign of air strikes against Iran. The move raised hopes for a diplomatic solution that would allow shipping to resume through the Strait of Hormuz.

Brent crude futures fell $8.42, or 8.7%, to settle at $88.36 a barrel, the lowest since July 17. U.S. West Texas Intermediate crude futures fell $6.70, or 7.5%, to close at $82.61, the lowest since July 16.

The conflict has reduced oil shipments via the Strait of Hormuz, and hindered exports from Saudi Arabia via the Bab el-Mandeb strait to Asia. US President Donald Trump said the US is holding 'good talks' with Iran, but threatened 'strong military action' if diplomacy fails.