Oil prices fell on Monday as markets reacted to de-escalating tensions in the Middle East during the weekend.
The US suspended its military campaign against Iran late on Friday after nearly two weeks of intensifying operations.
Tehran mirrored Washington’s posture, halting its own operations, while Iran and Oman engage in talks.
A return to diplomatic negotiations could raise hopes of more favourable conditions for maritime traffic, which could weigh on crude prices further. Markets could continue to monitor the developments in transit levels through the Straits of Hormuz and Bab al-Mandeb as easing shipping bottlenecks could drive prices toward their latest lows.
Looking ahead, oil markets are likely to stay focused on the durability of the pause in military operations and the outcome of the Iran-Oman talks. Continued progress could help reduce shipping constraints, adding to downward pressure on crude. Conversely, any breakdown in negotiations could quickly reverse the recent decline.
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