Oil prices slide 6% on report Iran may halt attacks
Oil prices fell as much as 6% on Monday after reports that Iran may halt attacks if a U.S.-brokered pause holds. Brent and WTI crude both dropped sharply as traders unwound risk premiums tied to fears of a wider Middle East conflict. Analysts cautioned the reports remain unconfirmed.
Oil prices dropped as much as 6% on Monday after reports suggested Iran may halt attacks if a U.S.-brokered pause in the broader conflict holds, easing fears of a prolonged disruption to Middle East crude supply. West Texas Intermediate and Brent crude both fell sharply in early trading, according to CNBC.
Traders had priced in a risk premium tied to the possibility of a wider regional conflict disrupting shipping through the Strait of Hormuz, a route through which a significant share of the world's oil passes. The reported de-escalation, described by sources as tentative, prompted an unwinding of some of those bets, sending futures markets lower across the board.
Analysts cautioned that the reports remain unconfirmed and that prices could reverse quickly if the pause does not hold or fresh incidents occur. Energy markets have swung sharply in recent months as the conflict's trajectory has shifted, and traders said they were watching for official confirmation from Tehran and Washington before adjusting positions further.
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