Oil Prices Plunge as Middle East Tensions Ease

Oil prices plummeted on Monday as tensions in the Middle East eased following a weekend pause in US strikes against Iran. The Brent crude benchmark dropped by about 6% to around $91 per barrel, while West Texas Intermediate fell below $84. Natural gas in Europe also took a hit, sinking by up to 7.8%. The sharp decline comes after a brief surge last week when Brent briefly topped $100 a barrel.

The US-Iran conflict has been ongoing for five months and has raised concerns about global inflation and supply risks. Despite the pause in strikes, Tehran-backed Houthis in Yemen claimed attacks against Saudi targets on July 25. However, neither Riyadh nor Aramco immediately confirmed these claims.

Despite the uncertainty, oil prices have surged by around 30% in July, driven by concerns about a global inflationary shock and stockpile depletion. The conflict has also led to increased reliance on alternative routes for crude exports, with Saudi Arabia's East-West pipeline becoming a key export outlet.