The price of oil has fallen sharply on hopes that a pause in attacks between the US and Iran could help lead to a resolution to the conflict.
Brent crude, the global benchmark for oil, sank more than 9% to below $88 a barrel at one point, marking a sharp turnaround from last week when it had risen above $100.
The fall came after the US ambassador to the UN said attacks on Iran had been halted for a second night in a row to give “talks some space”.
An Iranian army spokesperson said on Sunday that Tehran had halted “retaliatory” attacks in the region in response.
The outbreak of the Iran war triggered a sharp rise in oil prices as the conflict led to the effective closure of the Strait of Hormuz, a key shipping route which usually carries about 20% of the world’s oil and liquefied natural gas (LNG).
