Brent crude oil prices plunged more than 7%, falling to $90.9 a barrel after an Iranian official confirmed Tehran would stop its attacks if the US maintains its pause on bombing. The announcement marked a pause in nearly two weeks of escalating conflict that had pushed oil prices above $100 just a day earlier.
West Texas Intermediate crude similarly dropped 7%, hitting $84 per barrel. According to the Iranian source, their stance is “attack for attack” Iran plans to halt its operations only when the US stops theirs, a message reportedly communicated directly to Washington.
Despite the pause, skepticism remains among analysts and officials. Many view the cessation of strikes as tactical instead of a genuine de-escalation, raising questions about how long this calm will last. The US paused airstrikes after 13 nights of bombing, citing low military targets and concerns over weapon stockpiles. President Trump’s decision aims to give diplomacy room according to US Ambassador to the UN Mike Waltz.
This drop in oil prices adds pressure on inflation concerns. HSBC’s US rates strategist Dhiraj Narula noted that while higher energy costs could push for longer Federal Reserve rate hikes, inflation expectations remain contained, helped by strong Fed communication. Brent crude prices held their lower levels early Monday, indicating Sunday’s slide was more than a brief correction.
