Oil Falls as US-Iran Pause Raises Hopes of Strait of Hormuz Reopening

Global oil prices fell sharply after the United States and Iran paused military strikes over the weekend, easing fears of a wider disruption to Middle East energy supplies. Brent crude dropped $5.70, or 5.9%, to $91.08 per barrel. US West Texas Intermediate fell $4.80, or 5.4%, to $84.51, their lowest levels in almost a week. The pause raised hopes that diplomacy could reduce tensions and allow commercial shipping to gradually return through the Strait of Hormuz. However, analysts say vessel traffic may not recover quickly because shipping firms remain concerned about security risks. Oil markets could still swing sharply if fighting resumes, while disruptions around the Red Sea and the Ukraine conflict continue to threaten global supply routes.

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