Oil Prices Plunge Over 10% on US-Iran Ceasefire Hopes
Crude oil benchmarks tumbled more than 10% on Monday, with Brent dropping 5.5% at the open, as the US and Iran halted hostilities and renewed diplomatic prospects.
Oil markets suffered a sharp selloff after the United States and Iran agreed to pause military actions, easing supply disruption fears. Brent crude fell over 10% on the day, with an immediate 5.5% drop at Monday's open.
The de-escalation revived optimism that negotiations could replace further attacks. Market participants interpreted the pause as a potential path toward reduced geopolitical risk premium in crude prices.
The decline marked one of the steepest single-day percentage drops in recent months, reflecting how rapidly sentiment can shift when tensions cool. Traders will now watch for any concrete diplomatic developments that could further pressure oil prices.
Source: FXStreet Forex News