Oil prices drop 5% as US, Iran consider halting attacks
What's the story
Oil prices witnessed a sharp decline on Monday, following a weekend of restraint from both the United States and Iran. The temporary halt in hostilities has raised hopes for a diplomatic resolution to the ongoing tensions in the Middle East. It also paves the way for gradual resumption of shipping through the vital Strait of Hormuz. Brent crude futures fell 5.05% to $91.89, while US West Texas Intermediate (WTI) crude dropped over 5% to $84.64 per barrel.
Market response
US-Iran ceasefire
The pause in hostilities comes after two weeks of attacks and has fueled hopes for a diplomatic solution to the conflict.
US ambassador to the United Nations Mike Waltz confirmed on Fox News Sunday that President Donald Trump had opted for a pause in strikes to allow more time for diplomacy.
Despite the recent surge, crude prices remain below the $126 per barrel level seen earlier in the conflict.