Oil Prices Plummet as Iran Pause Fails to Address Shipping Disruptions

Crude oil futures plummeted on Monday as investors took a cautious approach following the White House's decision to pause attacks on Iran. The move was seen as a reason to lock in gains, with Brent crude prices surging from the low $70s to above $100 in just three weeks.

However, analysts note that the pause in strikes does not address the underlying shipping problem that drove the rally. In fact, fewer than 10 commodity vessels per day moved through the Strait of Hormuz over the weekend, while Saudi Arabia's Red Sea alternative remains under threat from Houthi fire.

Kazakhstan also suffered a significant blow after drone attacks hit its Black Sea export terminal, resulting in more than half of its daily oil production being lost. The barrels that were missing last week are still missing on Monday, with the only change being the cessation of hostilities for a few days.