LAGOS — Global crude oil prices tumbled over 4% on Monday after the U.S. and Iran paused military strikes over the weekend, sparking hopes of diplomatic resolution and a potential resumption of Strait of Hormuz shipping.
Brent crude futures fell $3.96, or 4.1%, to $92.82 a barrel after briefly breaking below the key $90 support level. U.S. West Texas Intermediate crude dropped 5.2% to $84.64 per barrel.
The weekend halt in attacks followed two weeks of intensive military exchanges that had previously driven Brent crude past the $100 benchmark. U.S. officials indicated the pause allows time for backchannel diplomatic negotiations.
Despite price relief, physical oil flows through key maritime chokepoints remain severely constrained. Data from analytics firm Kpler revealed fewer than 10 commodity vessels navigated the Strait of Hormuz daily over the weekend.
The market pullback follows three consecutive weeks of gains fueled by Middle East supply fears. Disruptions continue to pressure global inflation and keep central banks attentive, with energy risks remaining elevated.
