US-Iran Conflict Pauses: Oil Prices Plummet Amid Diplomatic Efforts
Oil prices plummeted on Monday as the US and Iran paused their military strikes to create space for diplomacy. The halt in hostilities followed 13 consecutive nights of escalating attacks that had threatened to plunge the global economy into chaos.
The Brent crude oil benchmark fell below $90 a barrel, while US crude dropped to around $83 a barrel, both down about 7% from Friday's close. Global markets saw modest gains, with US stock futures up.
The temporary lull in violence came after President Donald Trump threatened a 'massive attack' to break Iran's grip on the strategic Strait of Hormuz. However, since then, the two sides have refrained from attacks for three days.
US Ambassador to the United Nations Mike Waltz attributed the decision to halt strikes to ongoing talks between the two nations. 'What the president is doing right now... is giving some space,' he said.