Oil Prices Plummet as US-Iran Pause Fuels Hopes of Strait Reopening

Oil prices plummeted on Monday after the US and Iran paused military attacks over the weekend. Brent crude fell 5% to $91.89 per barrel, while WTI crude dropped 5.23% to $84.64 per barrel.

The decline reflects growing optimism that a sustained diplomatic pause could reduce the risk of major disruptions to global oil supply. Analysts said the pause in hostilities is a positive sign for the reopening of shipping routes through the Strait of Hormuz, which has been affected by the conflict.

Iran's Foreign Ministry spokesman Mohammad Akraminia warned that any renewed military escalation could widen the conflict. Despite the temporary halt in attacks, shipping activity through the Strait of Hormuz remained subdued during the weekend, with fewer than 10 commodity vessels passing through daily.