Oil Prices Plummet After US and Iran Pause Conflict
Oil prices plummeted to their lowest levels in over a week on Monday after the US and Iran paused strikes over the weekend. The conflict, which has been ongoing for two weeks, had reduced oil shipments via the Strait of Hormuz, leading to Brent crude futures falling $7.55, or around 7.8%, to $89.23 a barrel by 1102 GMT.
US West Texas Intermediate crude was at $83.30 a barrel, down $6.01, or around 6.73%. This marks the lowest levels since July 20. The pause in attacks is seen as an attempt to allow more time for diplomacy, but analysts are cautious about the prospects of a resolution.
'The market seems to be forever seeking good news from an arena that really is not providing any,' said PVM analyst John Evans. 'A stay of military strikes might seem an improvement, but it does not come with any guarantees that oil will soon flow from the area.'