Oil Prices Plummet as US Pauses Air Strikes Against Iran

Oil prices plummeted on Monday to their lowest levels in over a week after the US suspended air strikes against Iran, sparking hopes of a diplomatic solution and resumption of shipping through the Strait of Hormuz.

The Brent crude futures fell $8.42, or 8.7%, to settle at $88.36 a barrel, while U.S. West Texas Intermediate crude futures dropped $6.70, or 7.5%, to close at $82.61.

Saudi Arabia's air defenses intercepted and destroyed drones launched from Iraq on Monday, as Yemen's Houthis claimed they targeted sensitive crude oil supply and transport sites linking eastern Saudi Arabia to the critical Red Sea oil export hub of Yanbu.

PVM analyst John Evans said, 'The market seems to be forever seeking good news from an arena that really is not providing any.' He added that oil futures will only continue lower if elevated price levels again dent demand, not due to 'questionable mini-ceasefires'.