Oil prices hit one-week low after US, Iran pause fighting over weekend

Oil prices tumbled 7% on Monday, hitting a one-week low, after the U.S. and Iran paused strikes over the weekend following two weeks of attacks, raising hopes of a diplomatic solution that would de-escalate the conflict and allow shipping to resume in the Strait of Hormuz.

Brent crude futures LCOc1 fell $7.55, or around 7.8%, to $89.23 a barrel by 1102 GMT.

U.S. West Texas Intermediate crude CLc1 was at $83.30 a barrel, down $6.01, or around 6.73%.

Both contracts are trading at their lowest levels since July 20.

Brent had reached $100 per barrel as the conflict, which reduced oil shipments via the Strait of Hormuz, spilled over to the Red Sea, hindering exports from the world's top exporter, Saudi Arabia, via the Bab el-Mandeb strait to Asia.