Oil Prices Plummet as US-Iran Tensions Ease
Crude oil prices plummeted nearly 5% on Monday after the US and Iran paused military strikes over the weekend. The lull in hostilities raised hopes for a diplomatic resolution that could ease regional tensions and restore the smooth flow of oil shipments through the Strait of Hormuz.
Brent crude futures dropped $4.89, or 5.05%, to $91.89 per barrel, briefly falling below the crucial $90 support level earlier in the session. Meanwhile, US West Texas Intermediate (WTI) crude declined $4.67, or 5.23%, to $84.64 per barrel.
The recent surge in energy prices has been driven by concerns over global oil supplies, particularly after Houthi threats to blockade Saudi ports intensified fears of higher inflation as inventories tighten and fuel prices rise.