Oil prices fell sharply on Monday as Asian markets opened, with investors expressing relief after U.S. strikes on Iran ceased for a second consecutive night, leaving the door open for renewed diplomatic talks.
اضافة اعلان
About 30 minutes into trading, international benchmark Brent crude dropped 5.89% to $91.08 per barrel, briefly falling below the $90 mark.
Meanwhile, U.S. West Texas Intermediate (WTI) crude declined 5.73% to $84.19 per barrel.
U.S. Ambassador to the United Nations Mike Waltz said President Donald Trump is giving negotiations with Iran "some room" to proceed.
Speaking to U.S. media, Waltz confirmed that talks are continuing, while emphasizing that the president has not ruled out military escalation against the Islamic Republic.
Before Friday, the U.S. military had carried out strikes against Iran for 13 consecutive nights, marking the largest combat operations since the ceasefire agreement reached in April.
Iran responded to the renewed hostilities, which resumed on July 7, by closing the Strait of Hormuz once again and launching missiles and drones at countries in the region, saying it was targeting bases used by U.S. forces.
Iranian military spokesperson Mohammad Akrami Nia said on Sunday that "the Americans have halted their attacks over the past two nights," adding, "Since our strategy is fundamentally based on reciprocal action, we have also suspended our retaliatory operations."
Markets have become increasingly optimistic about the possibility of a truce that would allow shipping to resume through the Strait of Hormuz, a strategic waterway that normally carries about one-fifth of the world's daily oil and liquefied natural gas consumption.
A second source of concern emerged after Yemen's Houthi movement announced on Monday what it described as a "blockade" in the Red Sea and the Gulf of Aden, targeting ships sailing from Saudi Arabia, the world's largest crude oil exporter.
The route has become increasingly important for Saudi exports as an alternative to the disrupted shipping lanes through the Strait of Hormuz.
Tony Sycamore, market analyst at IG Markets, said in a note: "There is growing hope that a genuine diplomatic path may be taking shape... Returning to the 14-point memorandum of understanding, along with greater clarity regarding control of the Strait of Hormuz, would be a good starting point."
Despite the pause in hostilities, shipping data from Kpler showed that fewer than 10 commodity-carrying vessels per day crossed the Strait of Hormuz at the beginning of this week.
