WTI Crude Price Plunges 7.5% as Iran Tensions Ease, Ukraine Attacks Weaken Russia's Oil Output
Crude oil prices plummeted on Monday as easing tensions between the US and Iran temporarily alleviated market fears. The September WTI crude price dropped by 7.5%, hitting a one-week low, while gasoline prices also declined.
The decrease in prices came after the US and Iran refrained from further attacks for a third day, with Iran indicating it would hold off on retaliation amid negotiations with Oman over the Strait of Hormuz. President Trump stated that the US had paused strikes to allow peace talks to proceed, accelerating the price declines.
However, tensions remain elevated as the US continues its blockade of Iranian oil shipments in the Persian Gulf. The Houthi militants in Yemen claimed to have struck facilities linked to Saudi crude exports in the Red Sea port towns of Jizan and Yanbu on Saturday. Yanbu has become a key Saudi crude export point since the Strait of Hormuz's closure due to the conflict.