- Oil prices extended losses on Monday, falling more than 5% after U.S. President Donald Trump paused strikes on Iran following two weeks of attacks, raising hopes for a diplomatic solution.
- Brent crude futures slipped $5.58, or 5.77%, to $91.20 by 2204 GMT, while U.S. West Texas Intermediate crude was at $84.40 a barrel, down $4.91, or 5.50%.
- Oil prices eased in early trading Sunday, falling further from a two-month high set last week, after the United States and Iran refrained from launching military strikes for a second straight day.
Oil prices have seen a significant decline following a pause in military actions between the U.S. and Iran, with Brent crude falling to $91.20 a barrel, a drop of 5.77%. This easing comes after two weeks of escalating tensions in the Middle East, which had raised concerns over oil supply disruptions.13
The Brent crude price briefly reached $102 a barrel last week, driven by fears of a potential all-out war that could hinder the global flow of crude oil. The Strait of Hormuz, a critical shipping route for one-fifth of the world’s oil, has been a focal point of these tensions, especially after U.S. and Israeli strikes on Iran.
In the U.S., the average price for a gallon of regular gasoline has risen to $4.11, up from $3.90 a month ago and $3.15 a year ago, according to AAA. This increase reflects the broader inflationary pressures affecting the economy, with traders now anticipating a 36% chance of an interest rate hike by the Federal Reserve in the near future.
As the situation develops, market analysts are closely monitoring the potential for diplomatic solutions that could stabilize oil prices and ensure safe passage for tankers in the region.
“Brent crude futures fell 5.77% to $91.20, while U.S. West Texas Intermediate dropped 5.50% to $84.40. The conflict had halted shipping through the Strait of Hormuz, through which a fifth of the world's oil passes, but traders now hope for de-escalation.”
