Oil Prices Plummet as US-Iran Cease Fire Takes Hold

The global oil market experienced a significant downturn after the United States and Iran put their military actions on hold, signaling hopes for diplomacy to prevent a wider regional conflict.

Brent crude oil prices plummeted over 5% during early Asian trading on Monday following the pause in strikes, with the price for a barrel of Brent crude to be delivered in September dropping 4.9% to $92.02 shortly after trading resumed.

The decline was part of a larger trend, as US oil prices also fell dramatically, with a drop of over 8% following the announcement that the US and Iran have ceased military actions and entered a new phase of negotiations.

According to the motor club AAA, the average price for a gallon of regular gasoline on Sunday was $4.11, up from $3.90 a month ago and just $3.15 a year ago.