Oil Falls After Ceasefire in US-Iranian Attacks

Oil prices fell more than 7% on Monday, hitting their lowest level since July 21, after the United States and Iran halted a two-week cycle of attacks at the start of the week, bolstering hopes for a diplomatic resolution that could de-escalate tensions and allow navigation to resume through the Strait of Hormuz. Brent crude futures dropped $7.54, or 7.79%, to $89.24 per barrel, their lowest since July 21, while US West Texas Intermediate crude fell $6.11, or 6.84%, to $83.20 per barrel. Both contracts were trading at their lowest levels since July 21, following a rise over the past three weeks, according to Reuters. Brent crude had previously reached $100 per barrel amid the ongoing regional conflict. Analysts at ING wrote in a client note: “Oil prices fell sharply in early trading as military tensions between the US and Iran eased, providing the first concrete signs of a potential de-escalation.” They added, “The movement in oil prices this morning clearly reflects the market’s strong appetite for positive news.”