Oil Prices Slump as US-Iran Pause Sends Traders Hopeful for Diplomatic Resolution

Crude oil prices plummeted more than 6% on Monday as the United States and Iran paused their attacks, giving traders hope for a diplomatic resolution to ease the conflict and restore oil shipments through the Strait of Hormuz.

Brent crude futures dropped $6.20, or 6.4%, to $90.58 per barrel in early trading, while West Texas Intermediate (WTI) fell $5.80, or 6.5%, to $83.51.

The sell-off marked a sharp change from last week when Brent climbed above $100 as attacks disrupted Middle East exports.

Iran said it would continue to hold fire as long as the United States maintained its bombing pause, while U.S. officials said Washington stopped its attacks to give diplomacy more time.