West Asia War LIVE: Iran halts strikes as Trump gives space to talks
Oil prices dropped significantly after the U.S. and Iran paused military strikes, signaling a potential de-escalation in West Asia. The pause in hostilities has boosted investor confidence and eased concerns regarding shipping routes in the Strait of Hormuz.
Why it matters
Global energy markets are highly sensitive to geopolitical stability in the Middle East, and this de-escalation directly impacts global inflation and fuel costs.
Oil prices tumbled 5% on Monday after the U.S. and Iran paused strikes over the weekend after 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 $4.89, or 5.05%, to $91.89 by 0009 GMT after briefly slipping under the key support level of $90 earlier in the session.
U.S. West Texas Intermediate crude was at $84.64 a barrel, down $4.67, or 5.23%.
Both contracts are trading at their lowest levels in nearly a week after rising for the past three weeks.
The dollar slumped against its major peers at the start of Asian trading on Monday after the U.S. paused its bombing campaign in Iran during the weekend, prompting a drop in oil prices and boosting global investor confidence.
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