Oil Prices Plummet as US Pauses Iran Strikes, Easing Supply Fears

Oil prices plummeted at the start of the trading week after the US paused its military strikes against Iran, easing tensions that had threatened to choke off energy supplies from the Middle East. Global benchmark Brent crude briefly collapsed more than 7%, dipping below $90 a barrel in early Asian trading before stabilizing near $92.

The sharp reversal follows a blistering rally that pushed prices to two-month highs and raised alarms about a potential return to triple-digit oil. West Texas Intermediate (WTI), the US benchmark, slid 5.6% to $84.34 a barrel for September delivery, extending Friday's 3.1% loss.

The pullback came after Washington held off on strikes against Iranian targets late Friday, marking the first significant pause in direct hostilities since the conflict erupted nearly five months ago. Iran's military subsequently confirmed that Tehran had also suspended its responses, opening a narrow window for de-escalation.