WTI Crude Prices Tumble Amid Hopes for US-Iran Conflict Resolution

West Texas Intermediate (WTI) crude oil prices retreated further from their highest level since June 8, trading near $84.00 on Monday amid renewed hopes for a diplomatic resolution to the US-Iran conflict.

The price of WTI crude opened with a bearish gap on Monday, down nearly 6% for the day, but recovered slightly from its four-day low touched during the Asian session.

The pause in the US bombing campaign against Iranian targets and Tehran's decision to suspend retaliatory attacks against Washington's allies in the Middle East have revived hopes for a diplomatic resolution, leading to some unwinding of the geopolitical risk premium and pressure on crude oil prices.

Analysts at Rabobank's RaboResearch Global Economics & Markets team noted that crude benchmarks have surged due to renewed supply concerns, including disruptions through the Bab el-Mandeb Strait and the Strait of Hormuz.