US-Iran Deal Hopes Send Oil Prices Plummeting Nearly 6% on Monday

Global oil prices plummeted in early Asian trading on Monday as investors shifted their focus from geopolitical fears to signs of easing tensions between the US and Iran.

The benchmark crude price dropped nearly 6% to $84.02 a barrel, down $5.29, while Brent crude fell 6.10% to $90.88 a barrel, down $5.90.

Natural gas also dipped 2.3% to $2.805 per unit.

The decline comes after a week of extreme volatility in energy markets, with oil prices briefly surging towards multi-month highs due to concerns over supply disruptions through the Strait of Hormuz and the Red Sea.

However, investor sentiment improved as Washington signaled it was holding back additional military action to allow room for diplomacy, reducing immediate concerns of a broader regional conflict.