Oil Prices Plummet 4% Amid US-Iran Ceasefire

Oil prices took a hit on Monday after the US and Iran paused their attacks over the weekend, sparking hopes of a diplomatic solution to de-escalate tensions in the region. The price drop was significant, with Brent crude futures falling by $3.96, or 4.1%, to $92.82 per barrel.

The pause in hostilities led to a decrease in oil shipments through the Strait of Hormuz, but analysts are still expecting markets to be supported if crude supplies remain affected by ongoing shipping risks in the Middle East and the Russia-Ukraine war.

As US Ambassador to the United Nations Mike Waltz told Fox News Sunday, President Donald Trump had decided to pause US attacks to allow more time for diplomacy. This decision led to a 'desperation for positive news' in the oil market, according to ING analysts.