US-Iran Strike Pause Sends Oil Prices Plummeting
Oil prices plummeted Monday after the United States and Iran paused their tit-for-tat strikes, giving the oil industry and shipping a much-needed respite. The international benchmark Brent dropped six percent to around $86 per barrel, while West Texas Intermediate fell by 6.8 percent to $83.22 a barrel.
The calm in the Middle East eased worries about a resurgence in inflation and fresh interest rate hikes, helping to lift equity markets. However, early gains on Wall Street failed to hold, with only the Dow remaining in positive territory.
Kathleen Brooks, research director at XTB Trading Group, noted that while the situation in the Middle East has calmed, it has not been resolved and could make a decline below $85 per barrel difficult. Investors are hoping for a resumption of peace talks, said David Morrison at Trade Nation.