US-Iran Pause Sends Oil Prices Plummeting

Global markets reacted with relief as the US and Iran paused strikes over the weekend, following two weeks of escalating fighting sparked by Iran's firing at ships trying to transit the Strait of Hormuz. The pause in attacks on Iranian coastal areas and infrastructure allowed oil prices to sink nearly 7%, with Brent crude dropping 6.8% to $85.49 per barrel.

'Oil's sharp retreat at the Monday open did more than knock a few dollars off the barrel,' said Stephen Innes of SPI Asset Management. 'It loosened the geopolitical knot that had been tightening around equities, currencies, bonds and central banks for most of July.'

The reduced oil shipments via the Strait of Hormuz have hindered exports from Saudi Arabia to Asia, with fewer than 10 commodity vessels passing through the strait daily during the weekend.