U.S.-Iran Pause Sends Oil Prices Plummeting Amid Diplomatic Hopes

Oil prices plummeted over 4.6 percent on Monday to $87.46 per barrel as the U.S.-Iran pause in military strikes boosted hopes for diplomatic resolution.

The decline in oil prices came after the United States and Iran refrained from further hostilities, easing tensions that had driven up prices in recent weeks.

Brent crude futures fell 4.61 percent to $87.46 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 5.22 percent to $84.65 per barrel.

The pause in military strikes has not yet led to a significant recovery in tanker traffic through the Strait of Hormuz, with fewer than 10 vessels moving through the strait each day over the weekend.