Oil slips 5% after US, Iran pause fighting over weekend
XLE•Analysts say recovery in flows may be slow
"Any rebound in flows through the Strait of Hormuz is likely to prove slow and partial, as many shippers remain wary and will want greater confidence in their safety before they bring more empty ships into the Strait," MST Marquee analyst Saul Kavonic said.
(Reporting by Florence Tan; Editing by Chris Reese and Jamie Freed)
Oil prices tumble as US, Iran pause strikes
SINGAPORE, July 27 (Reuters) - Oil prices tumbled 5% on Monday after the U.S. and Iran paused strikes over the weekend after 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 $4.89, or 5.05%, to $91.89 by 0009 GMT after briefly slipping under the key support level of $90 earlier in the session.
U.S. West Texas Intermediate crude CLc1 was at $84.64 a barrel, down $4.67, or 5.23%.
Both contracts are trading at their lowest levels in nearly a week after rising for the past three weeks.
Shipping through key routes remains subdued
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.
"Hopes are rising that a genuine diplomatic path may be opening," IG markets analyst Tony Sycamore said in a note.
