International crude oil prices fell sharply on Monday after reports suggested Iran was prepared to suspend attacks provided the United States refrains from further military action, raising hopes of easing tensions in West Asia after nearly two weeks of conflict.
International benchmark Brent crude futures for September delivery declined 4.88 per cent to trade at around $92 a barrel. US West Texas Intermediate (WTI) crude futures for September delivery also dropped more than 5 per cent to $84.84 a barrel as investors responded positively to signs of possible de-escalation, reported CNBC.
Iran Willing To Halt Attacks
According to a Reuters report, citing a senior Iranian official, Tehran has conveyed that it will stop carrying out attacks as long as the United States also refrains from launching strikes.
The official reportedly said Iran's position continues to follow an "attack for attack" approach, adding that if military action against Iran ceases, Tehran would also halt its operations. The message has already been communicated to the United States, the report stated.
The development comes after Washington reportedly decided to suspend its bombing campaign. The decision followed advice from President Trump's advisers, who warned that the military was running short of viable targets while also expressing concerns over the depletion of US weapons stockpiles.
US Ambassador to the United Nations Mike Waltz said on Fox News Sunday that President Trump had opted to pause the strikes to provide space for diplomatic efforts to continue.
Markets Respond
The prospect of reduced hostilities helped ease fears of prolonged supply disruptions from the region, prompting a broad sell-off in crude oil futures.
Oil prices had remained elevated in recent sessions as markets closely monitored the conflict and its potential impact on global energy supplies. The latest indications of a possible pause in military action, however, improved investor sentiment and weighed on crude prices.
Despite the sharp fall in oil prices on Monday, market participants are expected to remain watchful of developments in the region, as any renewed escalation could quickly reverse the decline.
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