Oil Prices Fall 5% as US-Iran Pause Weekend Hostilities

Oil prices fell sharply on Monday after the United States and Iran paused military strikes over the weekend, boosting expectations that diplomatic efforts could ease tensions following two weeks of conflict.

 

Brent crude futures declined 4.1%, or $3.96, to $92.82 per barrel by 0329 GMT, after briefly slipping below the key $90 support level earlier in the session. The temporary halt in hostilities raised hopes that shipping activity through the Strait of Hormuz could gradually recover, although vessel traffic remained subdued.

 

Meanwhile, U.S. Ambassador said President Donald Trump had paused further attacks to allow more time for diplomacy. However, shipping disruptions persisted in the Red Sea, where maritime traffic remained slow following a Houthi attack on Saudi Arabia. Market participants are closely monitoring developments as any renewed escalation could quickly affect global oil supplies and prices.