N'djamena: Oil prices fell sharply on Monday after a pause in hostilities between the United States and Iran boosted hopes for a return to ceasefire efforts and negotiations over the Strait of Hormuz. Brent crude dropped more than 7% at one point, briefly falling below $90 (pound 79) a barrel, as investors welcomed signs of de-escalation after nearly two weeks of exchanges between Washington and Tehran.
According to Deutsche Welle, the US refrained from launching further strikes over the weekend, while Iran said it would halt retaliatory attacks against regional neighbors. The moves eased concerns over disruptions to shipping routes and global energy supplies.
Meanwhile, Iran said discussions with Oman had made progress on managing the Strait of Hormuz, a critical global oil transit route. Foreign Ministry spokesperson Esmaeil Baghaei said the talks focused on ensuring safe shipping passage while respecting the sovereignty of the countries involved.
The recent conflict had pushed oil prices above $100 a barrel for the first time since May, as concerns grew over threats to shipping in the Strait of Hormuz and the Red Sea.