Oil prices fall 5%: Crude cools as US-Iran pause fuels hopes of diplomatic breakthrough

Oil prices fell over 5% after the US and Iran paused fresh strikes, fueling hopes for a diplomatic resolution to Middle East tensions.

Brent crude futures dropped 4.52% to $92.41 a barrel, while US WTI crude fell 4.81% to $85.01 a barrel.

US ambassador to the UN Mike Waltz stated that Donald Trump paused US attacks to allow more time for diplomacy.

Shipping through the Strait of Hormuz remained subdued, with fewer than 10 commodity vessels passing daily over the weekend.

Brent crude had briefly touched $102 a barrel last week during the escalation, but the pause in hostilities led to a retreat.