US-Iran Truce Sends Oil Prices Tumbling by Nearly 6 Percent
A diplomatic pause in hostilities between the US and Iran has led to a sharp decline in crude oil prices, offering relief to global energy markets.
The temporary truce, which aims to secure free passage through the Strait of Hormuz, has been greeted with market optimism. Brent crude plummeted by nearly 6 percent, dropping to USD 91.08 per barrel after briefly dipping beneath the psychological USD 90 threshold.
Investors reacted positively to the absence of fresh drone strikes on oil tankers and the halting of retaliatory bombings. Tehran has suspended retaliatory actions against American allies in the region, while US Ambassador to the United Nations Mike Waltz stated that his country remains 'locked and loaded' but willing to give diplomacy 'a little bit of room.'