Global oil prices dip below $90 as US halts Iran attacks
Crude prices fell about 9% to roughly $88 a barrel on Monday after the United States paused military actions against Iran, prompting mixed reactions in equity markets.
Oil prices fell sharply on Monday after the United States announced a pause in its attacks on Iran, avoiding a larger escalation of the conflict. Benchmark crude slipped about 9% to around $88 a barrel, moving below the $90 threshold that had been breached in recent days.
The decline came as the Dow Jones Industrial Average rose 262 points, or 0.5%, while the S&P 500 inched up 0.02% and the Nasdaq edged down 0.1%. Analysts noted that lower crude prices could translate into reduced gasoline costs, which currently average $4.11 per gallon according to the American Automobile Association.
"Iran has no negotiations with America," Iranian Foreign Ministry spokesperson Esmaeil Baghaei told reporters, adding that ongoing talks involve Oman and focus on arrangements for the Strait of Hormuz.
U.S. officials reportedly chose to defer a major escalation in order to pursue diplomatic channels aimed at reopening the strategic waterway. Sources said senior Pentagon officials were also concerned about the impact of a larger conflict on the military's stockpiles of air-defense interceptors.
Oil markets have been volatile in recent weeks, with prices previously dropping after reports of a tentative agreement to end hostilities, then rising again as fighting intensified. The Strait of Hormuz, which carries about one-fifth of global oil shipments, saw a sharp decline in traffic during the escalation, contributing to earlier price spikes above $100 a barrel.