Live: West Asia Conflict Pause Brings Relief to Global Markets and Oil Prices

Crude oil prices saw a sharp decline of 5% on Monday morning as a temporary halt in strikes over the weekend between American and Iranian forces brought relief after a fortnight of heavy combat. This breather has fueled optimism regarding a diplomatic resolution aimed at calming tensions and reopening maritime navigation through the crucial Strait of Hormuz. By 0009 GMT, Brent crude futures plunged $4.89, representing a drop of 5.05%, to settle at $91.89, having briefly dipped below the crucial $90 support mark earlier in trading. Meanwhile, US West Texas Intermediate (WTI) crude slipped by $4.67, or 5.23%, standing at $84.64 per barrel. Following three consecutive weeks of gains, both major oil benchmarks have now dropped to their lowest prices in almost a week.

The US dollar weakened against top international currencies as Asian markets opened on Monday, following the suspension of the American bombing campaign in Iran over the weekend. The pause triggered a drop in energy prices and lifted broader investor morale worldwide. Trading against the Japanese currency, the greenback dropped 0.2% to 163.585 yen, marking its sharpest single-day retreat since July 10. Simultaneously, the euro rose 0.2% to trade at $1.1397, while the British pound registered a similar uptick to reach $1.3353. Crude prices slid in early Asian session trades, with Brent crude plummeting 4.7% to $92.19 as US military operations were placed on hold after two weeks of continuous bombardment. Speaking to Reuters on Sunday, a high-ranking Iranian representative mentioned that Tehran would refrain from launching further attacks if Washington maintains its pause, following diplomatic initiatives spearheaded by China to restart peace discussions in Pakistan aimed at concluding the conflict.