Oil prices fell nearly 6% on Monday after US President Donald Trump paused strikes on Iran following two weeks of attacks, raising hopes for a diplomatic solution to the conflict.
International benchmark Brent crude traded at $86.38 per barrel at 10.20 a.m. local time (0720 GMT), down 5.78% from the previous close of $91.68.
US benchmark West Texas Intermediate (WTI) fell 6.3% to $83.69 per barrel, compared with $89.31 in the previous session.
Brent crude briefly climbed to $100 a barrel last week amid concerns that disruptions to shipping through the Strait of Hormuz and the Bab el-Mandeb Strait could affect crude exports from the Middle East.
However, prices retreated after Trump paused strikes on Iran, easing the war risk premium that had driven last week’s gains.
Trump directed the military not to launch new strikes on Iran on Friday, ending nearly two weeks of daily attacks, Axios reported on Saturday, citing sources familiar with the decision.
The decision suggests Trump wants to allow more room for diplomacy and believes the current level of US strikes has reached its practical limit without expanding into major combat, according to the report.
The move raised hopes for renewed diplomacy, although Iranian Foreign Ministry spokesman Esmaeil Baqaei told Austria’s ORF television on Sunday that conditions for negotiations remain absent and accused Washington of undermining diplomacy through its military actions.
CNN also reported that US Vice President JD Vance and the country’s top military general had urged Trump to avoid a major escalation in the conflict during a high-level meeting on Friday.
Despite signs of de-escalation, markets remained cautious as risks to shipping through the Strait of Hormuz and the Bab el-Mandeb Strait persisted.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr
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