Global crude oil prices experienced a notable decline on Monday, with major benchmarks dropping by up to 7% following the decision by the United States and Iran to pause military actions over the weekend.
The international benchmark Brent crude saw a decrease of over 7%, amounting to about $7, settling around $91 per barrel. Similarly, the US West Texas Intermediate (WTI) crude also fell by more than 7%, dropping approximately $6.4 to trade below $85 per barrel.
This sharp decrease in prices came after Iran expressed its intention to refrain from further attacks as long as the US reciprocated by halting military operations, leading to expectations of a potential diplomatic resolution to the conflict.
Market analysts noted that despite the significant correction on Monday, crude oil prices have surged by nearly 40% this month due to supply disruptions extending from the Strait of Hormuz to the Red Sea, a crucial route for Saudi oil exports.
Experts also highlighted that while the current correction is substantial, geopolitical risks remain high, as evidenced by recent attacks on Saudi Aramco facilities by Iran-backed Houthi forces in the Red Sea ports of Jizan and Yanbu.
