Oil Prices Plunge as US Pauses Iran Air Strikes
Oil prices plummeted on Monday to their lowest levels in over a week after the US temporarily suspended its campaign of air strikes against Iran, raising hopes for a diplomatic solution that would allow shipping to resume in the Strait of Hormuz.
Brent crude futures fell $8.42 (8.7%) to settle at $88.36 a barrel, the lowest since July 17, while U.S. West Texas Intermediate crude futures dropped $6.70 (7.5%) to close at $82.61, also the lowest since July 17.
The US decision to pause its attacks was announced by President Donald Trump, who said there's a 'good chance' that something could happen regarding a potential deal with Iran. However, industry analysts warn that oil markets remain highly volatile due to ongoing tensions and physical flow constraints.