Oil Prices Fall After Attacks on Iran Are Suspended, Hopes for De-escalation Rise

Fuel prices on global markets fell sharply after the White House announced a halt to air operations against Iran and suggested that talks on restoring normal passage through the Strait of Hormuz were making progress.

Global benchmark Brent crude fell by around 5.6%, stabilizing at about $83 per barrel, while the US benchmark lost approximately 5.5%, retreating to nearly $80 per barrel.

The downward correction was driven by investors’ response to signs of a diplomatic path forward and the possibility that tensions between Washington and Tehran could ease.

The Strait of Hormuz remains at the epicenter of the energy crisis. This waterway is a vital artery for global energy supplies; before the conflict escalated, around 20 million barrels of oil passed through it each day.

However, military activity has imposed severe restrictions on maritime traffic and heightened uncertainty in international markets.

Although Trump has suspended plans for further offensives, Iranian officials have yet to provide any concrete indication that they will change their approach to the strait. A spokesperson for Tehran’s foreign ministry stressed that an agreement with Oman on an alternative maritime corridor does not automatically mean the area will reopen.

Several vessels have faced direct threats while attempting to pass through the Strait of Hormuz, while units of Iran’s Revolutionary Guard have physically intervened against them.

Against this backdrop, Riyadh has stepped up its use of alternative routes for oil exports, relying more heavily on the Bab al-Mandeb Strait. However, this route also remains at risk from attacks by Yemen’s Houthi rebels, who are backed by Tehran.

Global markets are now focused entirely on the progress of US-Iran talks and whether they will result in an agreement that restores the normal flow of energy resources in the troubled Gulf.