Oil Prices Plummet as US-Iran Conflict Pauses

Oil prices plummeted by more than 5% on Monday after the US and Iran paused strikes over the weekend. This comes as a relief to markets, which had been volatile due to the escalating conflict in the Middle East.

The Brent crude futures fell $5.70, or around 5.9%, to $91.08 a barrel, while US West Texas Intermediate crude was at $84.51 a barrel, down $4.80, or around 5.4%. This marks a significant drop in prices, which had been rising for the past three weeks.

Analysts attribute this dip to the pause in military strikes, but warn that it does not guarantee a resolution to the conflict. In fact, Societe Generale analysts estimate that each month without a resolution would add at least $10 a barrel to oil prices.