US-Iran Strike Pause Sends Oil Prices Plummeting

Global stock markets rallied and oil prices plummeted on Monday as the United States and Iran paused their tit-for-tat strikes, easing concerns about a resurgence in inflation.

The International benchmark Brent crude price dropped eight percent to around $89 a barrel after the US and Iran held back from further hostilities.

This comes after the two nations resumed hostilities this month, breaking a fragile truce, with Iran attacking ships passing through Omani waters in the Strait of Hormuz.

The calmer situation is expected to have a positive impact on equity markets, with Frankfurt jumping more than 1.5 percent and London and Paris also gaining midday deals.

Kathleen Brooks, research director at XTB trading group, cautioned that despite the calm, 'the situation in the Middle East has not been resolved, and it could make a decline below $85 per barrel tricky at this stage.'