US and Iran pause military strikes near Strait of Hormuz as oil prices tumble
The US and Iran both held off on military strikes near the Strait of Hormuz on Monday, and oil prices posted their sharpest drop in weeks. Iran says it has no direct talks with Washington, only technical talks with Oman on shipping safety. Mediators from Pakistan, Qatar, Turkey a
Brent crude fell over 4% to $92.27 a barrel and WTI dropped to $84.83, both down from a $102 spike last week, after the US and Iran held off on strikes near the Strait of Hormuz, which normally carries a fifth of the world's oil. The conflict began when the US and Israel struck Iran in February. Iran's foreign ministry says its only ongoing talks are technical discussions with Oman on shipping safety, calling them useful, while denying direct negotiations with Washington despite a mediator-floated 10-day truce. Traders are now pricing a 36% chance of a Federal Reserve rate hike at its next meeting, per CME Group data, tracing back to inflation pressure from the conflict.