Global oil prices dropped more than 4% on Monday after the United States and Iran paused military strikes over the weekend following two weeks of heavy exchanges, raising market hopes for a diplomatic de-escalation in the Middle East. International benchmark Brent crude fell back toward $91 a barrel while U.S. West Texas Intermediate dropped to around $85 a barrel, reversing gains that had previously pushed crude past the $100 mark.
The market pullback followed confirmation from U.S. officials that President Donald Trump ordered a pause in aerial bombardment to allow room for negotiations. U.S. Ambassador to the United Nations Mike Waltz stated that the temporary halt was intended to give diplomatic channels a chance to mediate the nearly five-month-old conflict and potentially restore stability to regional shipping routes.
Despite the temporary lull in strikes, energy analysts note that tanker traffic through the Strait of Hormuz and the Bab el-Mandeb strait remains well below normal levels, as maritime operators await stronger safety guarantees before sending vessels back into the region.
