Iran, US Tensions Ease, Oil Prices Plummet on Global Markets

Global markets breathed a sigh of relief on Monday as tensions between Iran and the US eased, leading to a decline in oil prices and the value of the dollar. According to Reuters, Brent crude prices plummeted by over four percent to approximately $92 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped by more than five percent.

The drop in oil prices was attributed to easing concerns among traders regarding widespread oil supply disruptions following the suspension of US strikes against Iran. However, signs of disruption to maritime transport persist, with only 11 commercial vessels navigating the Bab-el-Mandeb Strait on Sunday, the lowest daily count recorded in several months.

The US dollar also weakened against a basket of major currencies, including the Japanese yen, the euro, and the British pound. Meanwhile, stock and bond markets recorded cautious gains.