Oil Prices Plummet Over 5% as US-Iran Tensions Ease

Crude oil prices plummeted over 5% on Monday as tensions between the United States and Iran eased, prompting investors to unwind their geopolitical risk premium.

Brent crude futures fell 4.73% to $87.31 a barrel, while West Texas Intermediate (WTI) crude futures declined 5.30% to $84.56 a barrel.

The sharp decline came after oil prices surged in recent sessions due to concerns over supply disruptions from the conflict zone.

Analysts noted that the easing of geopolitical concerns removed some of the premium that had supported crude prices, leading to a broader shift in market expectations.