Oil Prices Plunge After White House Pauses Iran Strikes
Oil prices plummeted on Monday after the White House announced it would pause attacks on Iran to give diplomacy more time. This led to a decrease in crude futures, which some market participants treated as an opportunity to lock in gains from Brent's recent surge.
Brent had risen from the low-$70s to above $100 in just three weeks, and while this increase made sense given the rising tensions and disruptions to global shipping, not everyone is convinced that the pause in strikes will address the underlying issues.
According to reports, fewer than 10 commodity vessels per day moved through the Strait of Hormuz over the weekend, exacerbating existing supply concerns. Meanwhile, Saudi Arabia's Red Sea alternative remains under threat from Houthi fire, and Kazakhstan has lost more than half its daily oil production after drone attacks on its Black Sea export terminal.