Oil Prices Plummet as Middle East Tensions Ease

Oil prices plummeted more than 6% on Monday as tensions in the Middle East eased, causing investors to unwind the geopolitical risk premium that had driven up crude prices. Brent crude futures fell $6.20, or 6.4%, to $90.58 a barrel after briefly dipping below $90 earlier in the session.

The US West Texas Intermediate (WTI) crude futures declined by $5.80, or 6.5%, to $83.51 a barrel, reaching its lowest level in about a week. This drop follows a three-week rally that saw oil prices surge due to concerns over disrupted global supplies.

The decline in oil prices is attributed to the easing of tensions between the US and Iran, which had been driving up crude prices. The recent developments have prompted investors to reassess their bets on geopolitical risks and unwind their positions.