Oil Prices Plummet as Strait of Hormuz Strikes Pause

Oil prices plummeted on Thursday after the US and Iran paused strikes in the Strait of Hormuz, a critical waterway for global oil trade. The price of Brent crude oil dropped 4.66% to $92.27 per barrel, while US crude (WTI) fell 5.02% to $84.83.

The recent surge in oil prices was largely due to fears of all-out war between the US and Iran, which would have severely impacted global oil supplies. The Strait of Hormuz is a narrow waterway off Iran's coast that accounts for a fifth of the world's oil exports.

Oil producers have been searching for alternative routes, but attacks on Saudi oil tankers in the Red Sea last week put pressure on those options as well.