Oil Prices Plummet as US-Iran Tensions Ease

Oil prices plummeted 4% on Monday after the US and Iran paused strikes over the weekend, sparking hopes of a diplomatic solution that could ease regional tensions.

The Brent crude futures contract fell $3.96 to $92.82 per barrel by 0329 GMT, while US West Texas Intermediate crude dropped $4.02 to $85.29 a barrel.

This marks the lowest levels for both contracts in nearly a week, after rising for three weeks prior. The price drop was triggered by the pause in attacks, which allowed oil shipments through the Strait of Hormuz to resume.

However, analysts caution that shipping risks remain high in the Middle East and Ukraine, which could continue to support oil prices despite the temporary reprieve.