Oil Prices Plummet as US-Iran Pause Military Strikes
Global crude oil prices plummeted on Monday after the United States and Iran paused military strikes over the weekend. The pause in hostilities sparked a sharp decline in key oil benchmarks, with Brent crude falling more than 7% or about $7 to hover around the $91-a-barrel mark.
US West Texas Intermediate (WTI) crude also declined over 7%, shedding around $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, fuelling expectations that the conflict could move towards a diplomatic resolution.
Market experts pointed out that crude oil prices are still nearly 40% higher this month due to supply disruptions spread 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.