Oil Prices Plummet as US-Iran Conflict Pauses
Oil prices plummeted by 4% on Monday after the US and Iran paused strikes over the weekend, sparking hopes of a diplomatic solution to the conflict. The Brent crude futures contract fell $3.96, or 4.1%, to $92.82 per barrel, while US West Texas Intermediate crude was at $85.29 a barrel, down $4.02, or 4.5%. Both contracts are trading at their lowest levels in nearly a week.
The conflict has reduced oil shipments via the Strait of Hormuz, which has hindered exports from Saudi Arabia to Asia. The US ambassador to the United Nations, Mike Waltz, told Fox News Sunday that President Donald Trump had decided to pause US attacks to allow more time for diplomacy.
Despite the pause in attacks, fewer than 10 commodity vessels passed through the Strait of Hormuz daily during the weekend, according to shipping data from Kpler. Analysts are still expecting markets to be supported if crude supplies remain affected by ongoing shipping risks in the Middle East and the Russia-Ukraine war.