Oil Prices Plummet Amid Uncertainty Over US-Iran Ceasefire

WTI Crude Oil closed below $81.00 on Monday, down almost 9% from Friday's close near $89.00, marking its fourth de-escalation of the war since spring.

The market's reaction to the pause in hostilities has been significant, with prices plummeting after the US President described talks as going well and hinted at a potential deal, only to be contradicted by Tehran's foreign ministry saying no negotiations were underway.

The physical market did not participate in the rally, with fewer than 10 commodity vessels transiting the Strait of Hormuz over the weekend, and the Red Sea route remaining shut due to Yemen's Houthi attacks on Saudi targets.