WTI futures fall 7.4% to near $78.50 after US suspends planned Iran attacks ahead of renewed peace negotiations.
West Texas Intermediate crude futures slid 7.4% to around $78.50 in European trading on Monday. The decline follows the US announcement of suspended military action against Iran after Tehran agreed to reopen the Strait of Hormuz and revive nuclear deal discussions.
Markets had priced in geopolitical risk premiums ahead of the weekend, with prior sessions showing elevated volatility. The Strait of Hormuz facilitates nearly 20% of global oil supply, making its status critical for energy markets. Analysts had expected a muted reaction to preliminary talks, but the scale of the drop reflects investor repositioning.
Trading volumes remained subdued as participants awaited further details from the US-Iran negotiations, set to begin Monday afternoon. The outcome could determine near-term supply stability in the Middle East.