Oil Prices Plunge Below $92 as US and Iran Pause Strikes

Oil prices plummeted over 5% on Monday after the US and Iran paused strikes over the weekend, following two weeks of attacks. The pause has raised hopes that diplomacy could help ease the conflict and eventually allow shipping through the Strait of Hormuz to return to normal.

Brent crude futures dropped $4.89, or 5.05%, to $91.89, while US West Texas Intermediate crude stood at $84.64 a barrel, down $4.67, or 5.23%. This decline comes after crude prices surged 10% last week.

Anindya Banerjee, Head of Commodity Research at Kotak Securities, said geopolitical developments were once again driving crude oil prices. He warned that 'any strike on major Gulf export infrastructure could force a retest of $95-100 and beyond.'

Goldman Sachs has warned that Brent crude could reach $120 a barrel if shipping through the Strait of Hormuz remains disrupted.