US-Iran tensions ease, global oil prices decline

Global oil prices tumbled more than 6% on Monday as tensions between the US and Iran eased following a weekend pause in strikes. This de-escalation after two weeks of attacks has raised hopes for a diplomatic solution, potentially allowing shipping to resume in the Strait of Hormuz. Consequently, reduced risks may stabilize oil markets by lowering risk premiums and preventing future price spikes in crude oil as the conflict between the two nations subsides.