US Pauses Air Campaign Against Iran, Oil Prices Plummet
The US and Iran have temporarily eased tensions after a series of air strikes by both countries. According to an Iranian official, Tehran will suspend retaliatory attacks as long as the US maintains its temporary halt to military operations.
A senior Iranian source stated that 'the principle remains an attack will be met with an attack.' However, if Washington refrains from military action, Iran will also suspend its operations.
The decision by the US to pause its air campaign against Iran has been welcomed by financial markets. Hopes of easing tensions in the Middle East triggered a sell-off in energy markets as the geopolitical risk premium began to recede.
Global crude oil prices fell by more than 5% on Monday, with Brent crude dropping $5.58, or 5.77%, to $91.20 a barrel, and West Texas Intermediate (WTI) falling $4.91, or 5.50%, to $84.40 a barrel.