Oil prices retreat as Washington and Tehran halt strikes, fueling hopes for talks to ease Middle East supply risks.
West Texas Intermediate crude fell to $82.50 per barrel, down over 7% in early Asian trading, after the US and Iran paused military strikes over the weekend. The temporary halt sparked speculation that diplomacy could reduce tensions and restore safe passage through the Strait of Hormuz, a critical chokepoint for global oil flows.
Prices had surged in prior weeks amid escalating attacks between the two nations, raising fears of prolonged supply disruptions. Analysts noted the pause follows US concerns over dwindling interceptor stockpiles and limited high-value targets, while Iran signaled a reciprocal suspension of operations if strikes cease.
Markets remain wary, however, as Iran-backed groups continue sporadic attacks in the region. Recent Houthi strikes on Saudi facilities along the Red Sea underscore lingering instability, keeping traders on edge despite the diplomatic opening.