Oil Prices Plummet as US Pauses Iran Attacks
Global oil prices plummeted more than 5% on Sunday evening as tensions between the US and Iran appeared to ease. The decline brought prices below $92 a barrel, reversing some of the gains made in recent weeks. The US had been conducting military operations against Iranian targets for 13 consecutive nights, but reports emerged that President Donald Trump had ordered a pause in attacks to give diplomacy 'time and space' to advance.
US Ambassador to the United Nations Mike Waltz told Fox News that the pause was intended to allow diplomatic efforts between Washington and Tehran to continue with mediation from several countries. The easing of tensions reduced concerns over potential disruptions to oil supplies from the Middle East, which had driven prices above $100 a barrel in recent weeks.
The Strait of Hormuz remains a key focus for energy markets, carrying roughly one-fifth of global oil and gas supplies. A prolonged disruption could have significant consequences for energy prices, shipping costs, and global markets. However, the market remains highly sensitive to developments on the ground, and prices could rise again if hostilities resume or negotiations collapse.