Brent crude falls to one-week low after Iran ceasefire
Brent and WTI dropped to one-week lows after the US-Iran attack pause eased fears of Middle East supply disruptions in global oil markets.
Crude plummets after attack pause
Oil prices plummeted on Monday to one-week lows after the United States and Iran suspended mutual attacks, fueling expectations of a diplomatic resolution and reducing fears of further supply disruptions from the Middle East. Brent crude fell 8.70% to $88.36 a barrel, while West Texas Intermediate (WTI) dropped 7.50% to $82.61. Both benchmarks hit their lowest levels since July 20.
US Ambassador to the UN Mike Waltz confirmed that President Donald Trump decided to temporarily suspend attacks to give diplomacy more time. The previous week, Brent had nearly reached $100 a barrel when the conflict spread to the Red Sea, a scenario that triggered volatility in global energy markets.
Supply doubts persist
Despite the price drop, analysts warned that the suspension of attacks does not guarantee oil will flow normally from the region again. According to tracking firm Kpler, fewer than ten commodity vessels per day transited the Strait of Hormuz over the weekend, compared to normal conditions where that passage accounts for about 20% of global seaborne oil trade.
This was compounded by another supply pressure factor: Kazakhstan, one of the world’s top ten producers, cut its daily production by more than half after the closure of its main Black Sea export terminal, hit by drone attacks. Production resumed shortly after, but the episode reinforced the perception of fragility in the global crude supply, even during price declines like the one recorded on Monday.