US-Iran Pause Sends Oil Prices Plummeting by Over 5%

Oil prices plummeted by over 5% on Monday as the US and Iran paused military strikes, easing fears of supply disruptions.

The Brent crude futures dropped $4.89 to $91.89 per barrel, while US West Texas Intermediate (WTI) crude fell $4.67 to $84.64 per barrel, hitting their lowest levels in nearly a week.

Military tensions had driven oil prices close to $100 per barrel as conflict in the Middle East disrupted shipments through key waterways, including the Strait of Hormuz and the Bab el-Mandeb Strait.

US Ambassador to the United Nations Mike Waltz said President Donald Trump decided to pause military strikes to allow more time for diplomatic efforts aimed at reducing regional tensions.

Analysts believe that renewed negotiations could lead to improved security for global shipping lanes, but warned that any recovery in shipping volumes is likely to be gradual.