Oil prices dip over 6% after US, Iran pauses fighting
Oil prices dropped significantly following a temporary pause in hostilities between the US and Iran. Despite the de-escalation, analysts remain skeptical about long-term market stability due to ongoing regional tensions.
Why it matters
Energy market volatility directly impacts global inflation and economic stability.
Oil prices hovered around a one-week low today after the US and Iran paused strikes over the weekend following two weeks of attacks, raising hopes of a diplomatic solution that would de-escalate the conflict and allow shipping to resume in the Strait of Hormuz.
Brent crude futures fell $6.78, or around 7%, to $90 a barrel this evening. They fell as low as 9.5% earlier in the session to $87.55 a barrel.
US West Texas Intermediate crude was at $83.65 a barrel, down $5.66, or around 6.3% and going as low as 8% earlier in the day to $82.12 a barrel.
Both contracts were trading at their lowest levels since July 20 earlier in the session.
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