Oil Prices Plummet as US and Iran Pause Hostilities

Oil prices plummeted by around 4% on Monday as the US and Iran paused military strikes over the weekend.

The two-week-long hostilities had fueled global tensions, particularly in the oil market. However, after a brief pause, optimism grew that diplomatic efforts might lead to a resolution, allowing shipping through the Strait of Hormuz to resume.

Brent crude futures dropped $3.96, or 4.1%, to $92.82 per barrel as of 03:29 GMT, barely avoiding falling below the key $90 support level earlier in the trading session.

Meanwhile, US West Texas Intermediate (WTI) crude traded at $85.29 per barrel, down $4.02, or 4.5%, from its previous close.