Oil prices collapsed after US and Iran suspended strikes
Oil prices collapsed after US and Iran suspended strikes. When bombings subside, markets breathe a sigh of relief, but the price of that relief is measured in dollars per barrel. Geopolitical tensions are not only diplomatic notes and military reports — they are also numbers on exchange boards that change in seconds. As soon as hopes for de escalation emerge, oil prices tumble and investors revise their strategies. This is a reminder that economics and politics are two sides of the same coin, and any movement in the Middle East echoes through global markets.
As of 18:43 Eastern Time (22:43 GMT) on Sunday, West Texas Intermediate (WTI) crude for September delivery fell to an intraday low of $83.10 per barrel, down $6.21, or 6.95 percent. Brent crude for September delivery fell to an intraday low of $89.58 per barrel, down $7.20, or 7.44 percent. The relief also lifted US stock index futures significantly, while gold and silver futures showed notable gains.
During Asian trading on Monday, oil prices continued to fall amid reports that Pakistan is pushing for a resumption of US Iran talks, fuelling optimism over de escalation in the Middle East. As of 06:20 Beijing time on Monday (22:20 GMT Sunday), WTI crude for September delivery was trading at $84.88 per barrel, down 4.96 percent, while Brent crude for September was at $92.04 per barrel, down 4.90 percent.
The price drop came after US President Donald Trump on Friday ordered US forces not to carry out strikes on Iran that day, breaking, according to media reports, a 13 day streak of consecutive US airstrikes on Iranian targets. On Sunday, Iran confirmed it had halted retaliatory attacks after the United States had ceased its strikes over the previous two nights.
Tensions between the US and Iran had persisted for weeks, peaking in mid July when the sides exchanged airstrikes and missile attacks. The suspension of hostilities came as a surprise to many analysts who had expected further escalation.
As CCTV+ reports. The drop in oil prices reflects market hopes that the conflict will not escalate into a full scale war, but uncertainty remains high, and any fresh signals from the Middle East could once again jolt prices.
