Tehran said it would stop attacks if the U.S. bombing pause holds, easing fears of a wider supply shock, though Iranian officials remain doubtful the calm will last.
Brent crude fell more than 7% to as low as $90.9 a barrel after a senior Iranian official said Tehran would halt its attacks as long as the United States keeps its bombing pause in place, helping cool concerns that the conflict would intensify and disrupt oil supplies. West Texas Intermediate also dropped as much as 7% to $84. The Iranian official described the position to Reuters as “attack for attack,” saying Tehran had already conveyed that message to Washington. The pause followed Washington’s decision to suspend its bombing campaign after 13 nights of U.S. strikes, with U.S. Ambassador to the United Nations Mike Waltz saying President Donald Trump wanted to give diplomacy room. Iranian officials, however, expressed more skepticism than optimism that the halt would endure. HSBC US rates strategist Dhiraj Narula said higher oil prices had revived expectations that the Federal Reserve could keep interest rates higher for longer, though inflation expectations have so far remained contained. Brent held near $92 into Monday, suggesting traders were waiting to see whether the pause becomes a lasting de-escalation or only a temporary break.