Brent crude futures fell by more than 10% to around $100 a barrel during trading on Monday, following signs of easing geopolitical tensions in the Middle East.
This decline came after US President Donald Trump announced a five-day suspension of planned strikes against Iran's energy infrastructure, a move aimed at giving diplomatic efforts a chance.
Trump explained that the decision came after what he described as constructive talks with Iran over the past two days, with negotiations continuing this week in an attempt to contain the crisis.
This development helped to calm market fears about supply disruptions, especially after recent heightened concerns over a US deadline for reopening the Strait of Hormuz, one of the world's most vital oil shipping lanes.
Markets reacted swiftly to the news, with concerns about further disruptions to energy infrastructure easing, while investors awaited confirmation that diplomatic efforts would succeed in reopening the strait sustainably.
📌 Summary
Oil prices fell sharply as tensions eased temporarily, amid hopes that negotiations would help stabilize supplies and contain the crisis in the region.