Oil Prices Plummet After US Pauses Strikes Against Iran

Oil prices plummeted on Monday as traders assessed Middle East supply risks following a pause in US strikes against Iran over the weekend. Brent crude dropped around 6% to nearly $91 a barrel, while West Texas Intermediate fell below $84.

The US had been striking Iranian targets for 13 days before holding off since late July 24, raising questions about President Donald Trump's next move. Tehran claimed it had suspended its responses, but the Houthis in Yemen said they had struck Saudi Aramco facilities in the Red Sea port towns of Jizan and Yanbu.

The conflict has sparked concerns of a global inflationary shock as stockpiles dwindle and product prices surge. Brent crude has surged by about 30% in July, briefly topping $100 a barrel last week.