Oil Prices Plummet Amid Hopes for US-Iran Ceasefire

The price of oil plummeted over 9% on Monday as hopes rose that a pause in attacks between the US and Iran could lead to a resolution in the conflict.

Brent crude, the global benchmark for oil, dipped below $88 a barrel, marking a sharp turnaround from last week when it had risen above $100. This comes after the US ambassador to the UN said attacks on Iran had been halted for a second night in a row to give 'talks some space', according to an Iranian army spokesperson.

The conflict between the US and Iran has had significant impacts on global energy supplies, with the Strait of Hormuz being effectively closed. This key shipping route usually carries about 20% of the world's oil and liquefied natural gas (LNG).

Susannah Streeter, chief investment strategist at Wealth Club, cautioned that markets remain 'cautious given the twists and turns during this conflict'. She noted that there is still significant uncertainty baked into these prices and a reticence about whether negotiations will lead to a lasting breakthrough.