Oil Prices Plummet as US-Iran Conflict Pauses

Global crude oil prices plummeted up to 7% on Monday after the US and Iran paused their military strikes over the weekend. The International benchmark Brent crude fell more than $7, hovering around $91 a barrel, while US West Texas Intermediate (WTI) crude declined over 7%, shedding about $6.4 to trade below $85 a barrel.

The sharp decline came after Iran indicated it would refrain from further attacks as long as the US also halted military operations, fueling expectations that the conflict could move towards a diplomatic resolution.

Despite the sharp correction, market experts pointed out that crude oil prices are still nearly 40% higher this month due to supply disruptions spreading from the Strait of Hormuz to the Red Sea. They cautioned that supply chain risks have not completely disappeared, with shipping through the Strait of Hormuz yet to return to normal.