Oil Prices Drop 9% as US‑Iran Attacks Pause
Brent crude slipped by more than 9% to below $88 a barrel on Monday, after the United States and Iran halted attacks for a second consecutive night—a move seen as a possible opening for diplomatic talks.
The decline comes after the U.S. ambassador to the U.N. announced that Iranian‑linked attacks had stopped on the second evening in a row, a pause echoed by an Iranian army spokesperson who confirmed a break in retaliatory strikes. The fresh ceasefire follows a brief memorandum of understanding in June that temporarily reopened the Strait of Hormuz, which carries about 20% of the world’s oil and LNG.
Oil markets had already been jolted earlier this month when the ceasefire collapsed, reigniting fears of supply disruptions. The price spike pushed Brent to $100 a barrel for the first time since May, exacerbated by Houthi missile attacks on Red Sea tankers that threatened alternate shipping routes.
Susannah Streeter, chief investment strategist at Wealth Club, warned that markets remain "cautious" amid the war’s unpredictability and that the uncertainty baked into current pricing may persist. Although the price plummet lifts immediate pressure, analysts caution that the sustainability of the ceasefire—and the risks it poses to global oil flows—remain unresolved.
The lull has ripple effects on consumer prices, as higher fuel costs often push up prices of other goods, contributing to inflationary pressures in many economies.
US and Iran pause strikes for third night to make space for talks, US ambassador says (2 hours ago)
