International News: Oil prices plunge as US and Iran pause attacks

By Zoila Palma:  Oil prices fell sharply after the United States and Iran halted attacks for a second consecutive night, raising hopes that the pause could create an opportunity for negotiations and a possible resolution to the conflict.

Brent crude, the global benchmark, dropped more than 9% at one point to below $88 a barrel, reversing a surge last week that pushed prices above $100, BBC reports.

The decline followed comments from the US ambassador to the United Nations that military attacks had been paused to give talks “some space.” An Iranian army spokesperson also said Tehran had halted its retaliatory attacks in the region.

The conflict had previously driven oil prices higher amid concerns over the effective closure of the Strait of Hormuz, a critical shipping route that normally carries around 20% of global oil and liquefied natural gas supplies.

Oil prices had briefly returned to around $70 a barrel after the US and Iran agreed in June to halt military operations and reopen the strait. However, the collapse of that ceasefire earlier this month reignited concerns about global energy supplies, while attacks by Houthi militants on oil tankers in the Red Sea added further pressure to a key regional export route.

Despite the latest decline, analysts warned that uncertainty remains high as markets await signs of a lasting diplomatic breakthrough.

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