Oil Prices Plummet as US Pauses Iran Strikes and Diplomatic Talks Resume

Oil prices plummeted by over 6% on Monday after the United States paused its military campaign against Iran, sparking hopes for diplomatic negotiations and a reduction in the 'war premium' that pushed crude to $100 a barrel.

The Brent crude price fell to around $90.93 per barrel, while West Texas Intermediate dropped 6.1% to $83.83 per barrel, both briefly dipping below their key support levels before recovering slightly.

Analysts at ING noted that the market quickly unwound its war premium once signs of de-escalation emerged, with oil prices above $100 a barrel prompting both sides to step back.