Oil Prices Slump as US-Iran Pause Fuels Diplomatic Hopes

Crude oil prices plummeted over 6% on Monday as the US and Iran paused attacks, giving traders hope for diplomatic solutions that could ease supply concerns.

The Brent crude futures price dropped $6.20 to $90.58 per barrel in early trading, while West Texas Intermediate (WTI) fell $5.80 to $83.51, both benchmarks reaching their lowest levels in nearly a week.

Despite the pause, oil flows have not yet returned to normal, with fewer than 10 commodity vessels crossing the Strait of Hormuz each day over the weekend.

The Red Sea remains a concern, with traffic through the Bab el-Mandeb Strait falling to its lowest level in months due to Yemen's Houthis reporting attacks on Saudi oil facilities.