Oil deepens losses, falling more than 6%

Oil prices deepened their losses during Monday’s trading, following a halt to reciprocal military strikes between the United States and Iran after two weeks of escalating confrontations, bolstering market hopes for a diplomatic resolution to the crisis.

NG analysts, in a client note, said oil prices fell sharply in early trading as both sides refrained from launching new attacks, providing the first tangible signs of a potential de-escalation, according to Reuters.

Despite the suspension of attacks, shipping data from Kpler showed that fewer than 10 commercial vessels transited the Strait of Hormuz daily over the weekend.

Saul Kavonic, an analyst at brokerage MST Market, suggested that any recovery in flows through the strait would be slow and partial, given tankers’ apprehension and desire to ensure security has stabilized before resuming normal operations.