US-Iran Tensions Ease, Oil Prices Plummet

Oil prices tumbled Monday as tensions between the US and Iran eased following a pause in tit-for-tat strikes. The US held fire over the weekend, and Donald Trump's UN envoy said the president was 'giving talks some space.' In response, Tehran announced it would stop its retaliatory attacks on regional neighbors.

The development boosted hopes for a return to their ceasefire and negotiations on reopening the Strait of Hormuz. The two countries had been locked in a cycle of escalation since Iran attacked ships passing through Omani waters in the strait earlier this month, derailed diplomatic efforts between Washington and Tehran.

Crude prices soared on the flare-up, but with shipping continuing in the Red Sea and talks making progress, investors pared their gains. Brent crude shed more than 7% at one point, briefly dropping below $90 a barrel.