Global oil prices fell sharply after a temporary pause in hostilities between the United States and Iran eased fears of further escalation and boosted hopes for a diplomatic resolution, Reuters reports.
Brent crude futures dropped $3.96 (4.1%) to $92.82 per barrel, while U.S. West Texas Intermediate (WTI) crude fell $4.02 (4.5%) to $85.29 per barrel. Both benchmarks were trading at their lowest levels in a week.
The decline followed comments by US Ambassador to the United Nations Mike Waltz, who said President Donald Trump had decided to pause military operations to allow time for diplomatic negotiations.
Despite the reduction in military activity, tanker traffic through the Strait of Hormuz has been recovering slowly, with shipowners waiting for stronger security guarantees before resuming normal operations.
At the same time, tensions remain elevated in the Bab el-Mandeb Strait due to continued Houthi attacks in the Red Sea. Analysts say the oil market remains volatile as logistical risks across the Middle East persist.
By Jeyhun Aghazada
