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NEW YORK: Oil prices hit a one-week low on Monday after the US abruptly suspended a campaign of air strikes against Iran over the weekend, 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 were down $7.78, or 8 per cent, at $89 a barrel by 1:40 pm EDT (1740 GMT). They fell as much as 9.5pc earlier in the session to $87.55 a barrel, the lowest since July 20.
US West Texas Intermediate crude futures fell to $82.89 a barrel, down $6.42, or 7.2pc. They dropped as much as 8pc earlier in the day, also hitting a one-week low.
Brent futures last week crossed $100 as the conflict, which has 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-al-Mandeb strait to Asia.
