Oil prices tumble as US-Iran attacks pause

Global oil markets breathed a sigh of relief on Tuesday as crude prices fell sharply, with hopes rising that a pause in US-Iran attacks could create space for diplomacy and help ease disruptions to energy supplies.

Brent crude, the global benchmark, fell by more than 9% at one point to around $87.59 a barrel, marking a dramatic reversal from the previous week, when prices climbed above the $100 mark amid fears that the escalating conflict could disrupt oil shipments.

The latest decline came after the US ambassador to the United Nations said American strikes on Iran had been paused for a second consecutive day. The move, according to US officials, was intended to create an opportunity for negotiations and potentially open a path toward de-escalation.

Iran has also indicated that it has halted its retaliatory attacks in the region, adding to expectations that the immediate pressure on global energy markets could ease.

The Strait of Hormuz has remained at the centre of the crisis. The strategic waterway is one of the world’s most important energy routes, and concerns over its security sent oil prices sharply higher when the conflict intensified.

The market reaction shows just how closely energy prices are tied to geopolitical developments. Even a temporary reduction in military activity can quickly change investor expectations about supply, shipping and the risk of a wider regional confrontation.

Meanwhile, Iranian Oil Minister Mohsen Paknejad said Iran had managed to sell more than $18 billion worth of oil during the war and the subsequent ceasefire period. Iranian authorities said $11.5 billion in oil was sold during the war, while another $6.5 billion was sold during the ceasefire.

Oil traders are now watching the diplomatic developments closely. A sustained pause could bring further relief to markets, while any fresh escalation could quickly push prices higher again.

For consumers and businesses worldwide, the latest fall offers a welcome reprieve after weeks of uncertainty. But with tensions still unresolved, the oil market remains highly sensitive to every new development between Washington and Tehran.