US-Iran Tensions Ease, Oil Prices Plummet Amid Ongoing Disruptions

Oil prices plummeted this week as tensions between the US and Iran appeared to ease. Brent crude dropped over 7% at one point, briefly dipping below $90 per barrel, as both countries paused strikes for a couple of days.

The market's reaction reflects its desire for positive news after 13 days of conflict. However, it's unclear why the US held back on further attacks, and there has been no significant increase in vessel flows through the Strait of Hormuz.

Meanwhile, Iran has continued to face threats from other parties, including the Houthis in Yemen, who claimed to have attacked several targets in Saudi Arabia, including energy facilities. These disruptions come amidst a surge in Ukrainian drone attacks on Russian energy infrastructure.