Oil prices dropped by over 7 percent on Monday amid the halt in the tit-for-tat strikes by US and Iran in the Strait of Hormuz.
The global benchmark, Brent Crude lowered by 7.2 percent and hit $89.85 a barrel in early London trading following the continued mediation efforts after two weeks of fighting that pushed oil above $100.
There has not been any signs of military strikes from the US since launching attacks overnight on Thursday, while Iranian military have also not launched any attacks on American bases in the region since Friday.
US Ambassador to the UN Mike Waltz stated Sunday that the US President Donald Trump was granting room for discussions before making a decision on resuming military action.
Furthermore, the oil market analysts have warned that against the expected additional plunge in oil prices noting that the Strait of Hormuz remains majorly closed for commercial purposes and escalating tensions between Yemen's Houthi militants and Saudi Arabia could cause further shipping disruptions.
