Oil Prices Plummet Over 8% as US-Iran Fighting Pauses
Oil prices plummeted over 8% on Monday after fighting between the US and Iran paused, easing concerns about supply disruptions in the Middle East. The temporary cease-fire boosted investor confidence, with global stocks rising as traders anticipated improved energy supplies from the region.
The price drop was most significant for Brent crude, which fell to around $89 a barrel for September delivery, down from its peak of over $100 a barrel last week. US benchmark West Texas Intermediate (WTI) crude also declined, dropping more than 7% to roughly $82 a barrel for September delivery.
Experts warned that markets remain focused on disruptions in key shipping routes, particularly the Strait of Hormuz and the Bab al-Mandab Strait. Kathleen Brooks, research director at XTB, noted that the conflict has not been resolved and could make a decline below $85 per barrel challenging.