Oil Prices Plummet After US and Iran Pause Military Strikes
Oil prices dropped sharply on Monday after the US and Iran paused military strikes over the weekend, raising hopes for diplomacy and reduced risk of disruptions to global energy supplies.
Brent crude fell to $87.29 a barrel, down 11.6% on the day, while WTI dropped to $84.60 a barrel, a decline of 6.5%
The pause in military operations was seen as a positive sign that the conflict may not escalate further, with analysts at the Traders Union saying investors were searching for any indication that geopolitical risks might begin to ease
Despite the decline, shipping activity through the Strait of Hormuz remains well below normal levels, and markets remain focused on supply security, with tanker operators continuing to assess security risks before resuming normal operations
Diplomatic efforts are ongoing, but any breakdown in talks could quickly reverse the latest decline in crude prices