Global oil prices dropped by more than 4 percent on Monday after the United States and Iran paused military strikes over the weekend. The development raised hopes that both sides could pursue diplomacy instead of further conflict.
Brent crude futures fell by $3.96, or 4.1 percent, to $92.82 per barrel. The benchmark briefly slipped below the $90 mark before recovering slightly.
US West Texas Intermediate (WTI) crude also recorded sharp losses during early trading. The benchmark dropped $4.02, or 4.5 percent, to trade at $85.29 per barrel.
Markets React to Reduced Tensions
Investors welcomed signs that the conflict may not escalate further. The pause in attacks increased expectations that shipping through the Strait of Hormuz could continue without major disruptions.
The Strait of Hormuz handles a significant share of the world’s oil exports. Any threat to the route often pushes global oil prices higher.
Traders are now watching for further diplomatic developments. Markets remain sensitive to any changes in the security situation across the Middle East. Get The Full Story Here.
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