(Web Desk) - Global oil prices fell sharply Monday after a pause in fighting between the United States and Iran, posting their biggest decline since April 8. Brent futures, the global benchmark, closed at $85.87 per barrel, down 11.3%. US crude dropped about 7% to $82.61 a barrel.
President Donald Trump said the US halted strikes on Iran at the request of the Iranian regime and warned the US would resume attacks if a new ceasefire deal weren’t reached.
Ship traffic through the Strait of Hormuz also remains well below prewar levels. Fewer than 10 commodity ships passed through the waterway as of Monday morning, according to shipping data tracked by CNN. Around 100 commercial vessels traversed the strait on a typical day before the war.
Oil traders are doubly wary given the threat of attacks on Saudi tankers by Iran-backed Houthi rebels in the Bab al-Mandeb Strait at the base of the Red Sea.
In a note on Monday, Deutsche Bank analysts said Houthi attacks raise “the prospect of simultaneous disruption to both Gulf and Red Sea export routes.”
“So (there’s a) welcome pause from the main actors but a fragile one, especially with side battles going on,” the analysts wrote.
Meanwhile, the Dow Jones on Monday gained 0.51%, the S&P 500 rose 0.02% and the tech-heavy Nasdaq fell 0.18%.