Oil Prices Plummet as US-Iran Conflict Pauses Temporarily

Washington D.C. Crude oil prices fell sharply in the world market on Monday after the conflict between the United States and Iran was temporarily halted. This decline is considered the biggest since April 8.

Brent crude futures, considered the main benchmark for the world market, closed down 11.3 percent at $85.87 per barrel. Similarly, US West Texas Intermediate (WTI) crude oil prices fell by about 7 percent to $82.61 per barrel.

US President Donald Trump said that the US stopped its military attack on Iran at the request of the Iranian government. He also warned that the US would resume attacks if a new ceasefire agreement could not be reached.

Even with the ceasefire, ship traffic through the Strait of Hormuz, a vital oil transit route, has not yet returned to pre-war levels. According to shipping data tracked by CNN, fewer than 10 cargo ships had transited the strait by Monday morning. Before the war, about 100 commercial ships used to pass through this route daily.

Oil traders are also wary of other risks. Uncertainty remains in the market due to fears that Iran-backed Houthi rebels may attack Saudi Arabian oil tankers in the Bab al-Mandeb strait, the gateway to the Red Sea.

Analysts at Germany's Deutsche Bank noted in a commentary released Monday that Houthi attacks increase the possibility of