Oil prices tumble 5 per cent after the US and Iran paused strikes over the weekend after two weeks of attacks, raising hopes of a diplomatic solution that would de-escalate the conflict and allow shipping to resume in the Strait of Hormuz, Reuters reports.
Brent crude futures fall $4.89, or 5.05pc, to $91.89 after briefly slipping under the key support level of $90 earlier in the session.
US West Texas Intermediate crude was at $84.64 a barrel, down $4.67, or 5.23pc.
Both contracts are trading at their lowest levels in nearly a week after rising for the past three weeks.
Brent had reached $100 per barrel as the conflict, which reduced oil shipments via the Strait of Hormuz, spilled over to the Red Sea, hindering exports from the world’s top exporter, Saudi Arabia, via the Bab el-Mandeb strait to Asia.
