Oil Prices Plummet 5% on US-Iran Halt in Hostilities

Oil prices plummeted by more than 5% in early Asian trade on Monday after the U.S. and Iran halted attacks following two weeks of escalation that drove Brent crude above $100.

The retreat came after Washington signaled on Friday it would temporarily halt its bombing campaign against Iran, with U.S. Ambassador to the United Nations Mike Waltz saying the pause was 'giving diplomacy some space' but added that additional military assets were moving into the region should diplomacy fail.

Iran also indicated it will suspend attacks, with foreign ministry spokesperson Esmaeil Baghaei stating talks with the Omani delegation on Friday and Saturday were 'constructive' and that some progress had been made. An Iranian official told Reuters on condition of anonymity that Iran's position is 'attack for attack', suggesting it will halt operations as long as the U.S. does.

Oil markets saw an aggressive round of profit-taking after weeks of relentless buying, but any sustained downward pressure will require a significant ramp-up in tanker traffic, with external factors contributing to the latest round of attacks coming to an end.