Oil prices slide as U.S. and Iran pause strikes to give ‘space’ for diplomacy

Key Points:

• Oil prices dropped sharply on Monday as the United States and Iran paused their escalating attacks, creating "space" for diplomatic talks after 13 consecutive nights of conflict disrupted the Strait of Hormuz and global oil supply.
• Brent crude fell below $90 a barrel and U.S. crude to around $83, both down about 7%, while global stock markets rallied, led by gains in AI-related companies amid hopes that lower oil prices might ease borrowing costs.
• Despite the ceasefire, Iranian officials expressed skepticism about peace negotiations, asserting they would defend their interests and maintain control over the Strait of Hormuz, which remains effectively closed.
• Shipping traffic through the Strait of Hormuz remained limited over the weekend, with some vessels attempting to pass covertly but facing incidents or being turned back under Iranian control.
• Israeli Prime Minister Benjamin Netanyahu traveled to Washington for talks with President Trump on Iran, while tensions also rose in other regions, including accusations of attacks on Iranian shipping by Ukraine amid the Russia-Ukraine conflict.