Oil Prices Plummet Amid US-Iran Conflict Pause
Oil prices plummeted in the global market on Monday after the US-Iran conflict paused temporarily. The decline was the biggest since April 8, with Brent crude futures falling by 11.3 percent to $85.87 per barrel. US West Texas Intermediate (WTI) crude oil prices also dropped by about 7 percent to $82.61 per barrel.
US President Donald Trump announced that the country had stopped its military attack on Iran at the request of the Iranian government, but warned that it would resume attacks if a new ceasefire agreement could not be reached. Despite the temporary halt in conflict, ship traffic through the Strait of Hormuz has not yet returned to pre-war levels, with fewer than 10 cargo ships transiting the strait by Monday morning.
Oil traders remain wary of other risks, including potential attacks on Saudi Arabian oil tankers by Iran-backed Houthi rebels in the Bab al-Mandeb strait. Analysts at Deutsche Bank noted that Houthi attacks increase the possibility of further disruptions to global oil supplies.