Oil Prices Plummet as US-Iran Conflict Pauses
Oil prices plummeted more than 5% on Monday following the pause in US-Iran military strikes, raising hopes of a diplomatic resolution that could ease supply disruptions in the Middle East.
Brent crude futures dropped by $4.89 to $91.89 per barrel after briefly dipping below the key $90 support level during early trading.
US West Texas Intermediate (WTI) crude declined by $4.67 to $84.64 per barrel, its lowest level in nearly a week despite climbing over the past three weeks as tensions in the Middle East disrupted oil shipments.
The decline was attributed to comments from US Ambassador to the United Nations Mike Waltz, who stated that President Donald Trump had decided to pause US attacks to allow more time for diplomacy.
IG market analyst Tony Sycamore noted that expectations for a diplomatic breakthrough have improved, with hopes rising that a genuine path may be opening up.