US-Iran Pause Strikes Sends WTI Oil Price Plunging
WTI oil price plummeted to near $82.50 per barrel on Monday, down by over 7%, after the US and Iran paused strikes for potential diplomacy. The brief halt in hostilities has raised hopes for a diplomatic resolution that could de-escalate the broader conflict and allow commercial shipping to safely resume through the Strait of Hormuz.
According to Reuters, US Ambassador to the United Nations Mike Waltz noted that while American forces remain 'locked and loaded,' President Trump wants to create space for potential negotiations. A senior Iranian official corroborated this stance, stating that Tehran's policy remains 'attack for attack', meaning if US strikes pause, Iran will likewise suspend its military operations.
However, market participants remain cautious about potential supply disruptions. Lingering uncertainty persists after Iran-backed Houthis in Yemen claimed responsibility for recent attacks on Saudi Arabian facilities along the Red Sea.