Crude fell as much as 7% before trimming losses after a second night without U.S. strikes on Iran eased immediate Middle East supply concerns, though Red Sea risks persisted.
Oil prices fell sharply on Monday after U.S. President Donald Trump paused strikes on Iran for a second straight night, reducing immediate fears of disruption to Middle East crude supplies. Crude dropped as much as 7% toward $83 a barrel before paring some losses, with Brent last down 5.77% at $91.20 by 2204 GMT after earlier slipping below $90 and U.S. West Texas Intermediate down 5.50% at $84.40. The lull in U.S. action, which began late Friday without an official announcement, improved broader risk sentiment, lifting Nasdaq 100 futures by more than 1% and weakening the dollar as the Australian dollar and euro gained. Tehran said it had halted retaliatory operations and was in talks with Oman over the Strait of Hormuz, though Iran-backed Houthi forces in Yemen said they attacked Saudi Aramco-linked facilities at the Red Sea ports of Jizan and Yanbu, keeping some geopolitical risk premium in the market.