Oil slips 4% after US, Iran pause fighting over weekend
XLE•Shipping routes remain disrupted
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.
The U.S. ambassador to the United Nations, Mike Waltz, told "Fox News Sunday" and other U.S. media that President Donald Trump had decided to pause U.S. attacks to allow more time for diplomacy.
"Oil prices fell sharply in early trading as the U.S. and Iran refrained from further military action, offering the first tangible signs of a potential de-escalation in tensions," said ING analysts in a client note.
"The price action in oil this morning clearly reflects the market's desperation for positive news."
