Oil Prices Plunge Amid Hopes for Diplomatic Solution

Oil prices plummeted to a one-week low on Monday after the US and Iran paused strikes over the weekend, sparking hopes of a diplomatic solution that could ease tensions in the region.

The Brent crude futures contract fell by $5.85, or around 6%, to $90.93 a barrel by 1:09pm GMT (6:09pm PKT), while US West Texas Intermediate crude dropped by $4.98, or approximately 5.6%, to $84.33 a barrel.

The price decline was attributed to the reduced threat of further conflict in the region, which had previously disrupted oil shipments through the Strait of Hormuz and contributed to higher prices.

Analysts were cautious about the prospects for a sustained recovery in oil prices, with some noting that there was no signed framework or verification mechanism in place to guarantee a peaceful resolution to the crisis.