Oil Markets Cool as U.S.-Iran Standoff Pauses, But Middle East Risks Continue to Loom
Oil prices posted a sharp decline Monday after the United States and Iran went a third consecutive day without exchanging direct military strikes, giving investors renewed optimism that the two adversaries may be stepping back from the brink of a broader regional conflict. While the latest pullback offered temporary relief to global energy markets, analysts continue to warn that the situation remains highly volatile as key shipping lanes across the Middle East face ongoing threats.
Brent crude, the international benchmark for oil prices, dropped roughly 6% to around $91 per barrel after briefly surging above the $100 mark only days earlier. U.S. benchmark West Texas Intermediate (WTI) also moved sharply lower, falling approximately 5.6% to trade near $84 per barrel. The retreat erased part of the gains accumulated during nearly two weeks of escalating military tensions.
