Oil prices drop 8% as Trump pauses Iran strike plans
Oil prices took a sharp 8% dip on Monday after President Trump hit pause on planned strikes against Iran, citing productive talks to cool down tensions in the Middle East.
Brent crude dropped to $103.27 per barrel, and West Texas Intermediate slid to $91.06.
Oil had reached its highest price since 2022
Just before the drop, oil had reached its highest price since 2022, and market volatility shot up fast.
The ongoing four-week war is making things shaky: shipping through the Strait of Hormuz (which handles about 20% of the world's oil) is being disrupted, and sudden attacks have kept traders on edge.
US lifts sanctions on Russian and Iranian oil at sea
With the crisis heating up, the US has temporarily lifted sanctions on Russian and Iranian oil at sea. Indian refiners plan to resume purchases from Iran.
Fatih Birol, executive director of the International Energy Agency, said the crisis was 'worse than the two oil shocks of the 1970s put together,'
while Federal Reserve Governor Stephen Miran said it was too soon to say how the energy price shock would affect inflation and that he still thinks rate cuts are warranted to support the job market.