Oil Prices Plummet on Pause in US-Iran Hostilities

Oil prices plummeted on Monday after the US and Iran agreed to pause their hostilities over the weekend. The decision to stand down from attacks has raised hopes of a diplomatic solution, which could lead to an easing of tensions in the Strait of Hormuz.

The price of Brent crude futures fell by 5.05%, reaching $91.89 per barrel, while US West Texas Intermediate crude dropped 5.23% to $84.64 a barrel. Both contracts have fallen to their lowest levels in nearly a week after rising for the past three weeks.

The conflict had previously caused oil shipments through the Strait of Hormuz to be severely disrupted, with only a few vessels passing through daily over the weekend. Analysts are cautious that even if diplomatic efforts succeed, it may take time for shipping to resume fully and safely.