Oil Prices Fall 6% After U.S. Pauses Iran Strikes and Diplomatic Talks Resume

TLDR

• Brent crude fell over 6% to around $90.93 a barrel on Monday after the U.S. paused its bombing campaign against Iran
• Brent had briefly hit $100 a barrel last week as fighting spread to the Red Sea
• Washington paused strikes after 13 consecutive nights, saying it was giving diplomacy space
• Iran said it would suspend retaliatory attacks while the U.S. pause holds
• Shipping disruptions through the Strait of Hormuz and Bab el-Mandeb Strait continue despite the pause

Oil prices dropped sharply on Monday after the United States paused its military campaign against Iran, raising hopes for a return to diplomacy and easing the war premium that had pushed crude to $100 a barrel.

Brent crude fell more than 6% to $90.93 a barrel. West Texas Intermediate dropped 6.1% to $83.83 a barrel. Both contracts briefly fell below their key support levels before recovering slightly.

Last week, Brent broke back above $100 a barrel for the first time since May. The spike came after fighting between the U.S. and Iran expanded beyond the Strait of Hormuz into the Red Sea.

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