Brent crude falls to $89.23 a barrel after diplomatic pause in Middle East conflict reduces supply disruption fears.
Oil prices plunged 7% on Monday, reaching a one-week low, as the U.S. and Iran paused military strikes over the weekend. Brent crude futures dropped $7.55 to $89.23 a barrel, while U.S. West Texas Intermediate fell $6.01 to $83.30.
The decline follows two weeks of escalating tensions that disrupted shipping in the Strait of Hormuz and the Red Sea, pushing Brent to near $100 per barrel. Markets had priced in supply risks, but the temporary halt in hostilities eased immediate concerns.
Analysts cautioned that the pause lacks a formal agreement or timeline, leaving uncertainty over long-term supply stability. Prices may remain volatile until a verified diplomatic framework is established.