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Iran and US pause strikes, easing pressure on Gulf shipping and oil
Brent crude fell about 8.0% on Monday to around US$89 a barrel as investors took the pause as a sign of talks having room to proceed.
Iran and the United States held their fire on Monday, giving Gulf shipping and the oil industry a respite from missile strikes, with Donald Trump’s UN envoy saying the president was allowing negotiations some space.
Tehran said it has halted retaliatory attacks against Washington’s allies in the Middle East, while the US UN ambassador, Mike Waltz, said US forces remained prepared but Trump would give diplomacy a little room. The pause came after fighting over the strategic Strait of Hormuz derailed diplomatic efforts and expanded the conflict to shipping lanes, Gulf allies, and regional military bases.
Before the slowdown, the US military carried out strikes on Iran for 13 consecutive nights, the biggest rekindling of the near five-month-old war since an April ceasefire. Iran’s army spokesman Mohammad Akraminia said the country’s strategy had been retaliatory and that it had also halted retaliatory operations.
The change coincided with a sharp move in energy markets. Oil prices tumbled on Monday, with international benchmark Brent dropping about 8.0% to just around US$89 a barrel, according to SCMP Economy.
Latest closeBrent $98.38 ▼2.3%