Oil Tumbles Over 5% as US and Iran Pause Strikes

Global oil prices fell by more than 5 percent on Monday after the United States and Iran paused military attacks, easing fears of an immediate disruption to crude supplies following two weeks of escalating conflict that had pushed Brent crude above $100 per barrel.

In early Asian trading, West Texas Intermediate (WTI) crude dropped 5.39 percent to $84.47 per barrel, while Brent crude fell 5.15 percent to $91.80 per barrel as traders unwound positions built during the recent surge in geopolitical tensions.

The decline followed Washington’s decision to temporarily suspend its bombing campaign against Iran. Speaking to CBS News’ Face the Nation, United States Ambassador to the United Nations Mike Waltz said the pause was intended to give diplomacy an opportunity, while noting that additional military assets had been deployed to the region in case negotiations fail.

Iran also signaled a willingness to halt attacks. Foreign Ministry spokesperson Esmaeil Baghaei said recent talks with an Omani delegation had been constructive and showed signs of progress.

An Iranian official told Reuters that Tehran’s approach remained “attack for attack,” indicating that Iran would refrain from military action as long as the United States does the same.

The easing of tensions prompted investors to take profits after weeks of heavy buying in oil markets. However, analysts said a sustained decline in prices will depend on the recovery of tanker traffic through the Strait of Hormuz and the Red Sea, where security concerns continue to disrupt shipping.

Analysts also pointed to factors behind the pause in hostilities, including the depletion of initial United States military targets, growing domestic political pressure ahead of the country’s midterm elections, and rising gasoline prices.

They cautioned that oil markets are likely to remain highly volatile, with future price movements continuing to depend on developments between Washington and Tehran.

Meanwhile, reports suggest diplomatic efforts are also gaining momentum. According to Reuters, Pakistan is again exploring ways to help revive stalled United States-Iran talks as part of a China backed initiative aimed at reducing tensions and restoring stability in the region.