- Oil prices fell nearly 5% as a result of the U.S.-Iran pause in military strikes and diplomatic efforts.
- Iran has indicated it will stop carrying out attacks as long as the United States also refrains from striking.
- The U.S. has refrained from striking Iran for a second straight night, easing concerns over disruptions to Middle East crude supplies.
- Brent crude fell below $90 a barrel, while U.S. crude oil futures dropped over 5% to $84.84 a barrel.
- Tehran said it halted attacks in response to the U.S. refraining from strikes, with Iranian officials meeting with Omani mediators over the weekend.
- Iranian officials conveyed that Tehran's stance remains 'attack for attack': if the attacks stop, Iran will also halt its operations.
Oil prices dropped significantly as Iran indicated it would cease attacks if the U.S. refrains from striking, marking a potential shift in the ongoing conflict.123
After 13 days of U.S. strikes, the U.S. has not attacked Iran since Friday night, coinciding with renewed diplomatic efforts.
An Iranian official stated, "Tehran's stance remains 'attack for attack': if the attacks stop, Iran will also halt its operations." This message has been communicated to the U.S. amid discussions with Omani mediators.5
As a result, U.S. crude oil futures plunged nearly 5%, with Brent crude falling below $90 a barrel. The international benchmark for September delivery dropped 4.88% to around $92 a barrel, while U.S. crude similarly fell over 5% to $84.84 a barrel.4
U.S. ambassador to the United Nations Mike Waltz noted that the pause in strikes was intended to facilitate diplomatic efforts. The easing of tensions has also led to a rise in U.S. equity futures, with Dow Jones futures up 0.5% and Nasdaq 100 contracts advancing more than 1%.
The dollar weakened against major currencies, as investors shifted away from haven assets, reflecting a cautious optimism in the markets.
“The US refrained from striking Iran for a second straight night, with a senior Iranian official signaling an 'attack for attack' doctrine. Meanwhile, Apple leads a massive earnings wave and markets see a 34% chance of a Fed rate hike Wednesday, rising to 82% by September.”
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