Oil Prices Plummet as US-Iran Hostilities Pause
Oil prices plummeted Monday morning as US-Iran hostilities paused after two weeks of strikes, sparking hopes for a negotiated peace in the region. Despite this, Yemen's Houthi militia continued to attack vessels in the Red Sea and hit Saudi energy assets.
Brent, the benchmark for more than two-thirds of global oil, dropped as much as 7% within minutes of markets opening but pared early losses to trade 4.17% at $92.74 a barrel by 7:45 am UAE time on July 27. West Texas Intermediate slipped 4.46% to $85.15 a barrel.
Kyle Rodda, senior financial market analyst at Capital.com, said that 'strkes have been put on hold in recent days, reportedly as US strategists rethink their effectiveness.' He added that the battle appears 'intractable and requires a major compromise from either the US or Iran to resolve.'