WTI crude fell 5.39% to $84.47, while Brent crude slid 5.15% to $91.80. The shift began after U.S. Ambassador to the UN Mike Waltz stated on Sunday that the bombing campaign was suspended to grant "diplomacy some space," though he noted that military assets remain positioned in the region should negotiations stall. Iran’s foreign ministry spokesperson, Esmaeil Baghaei, echoed this sentiment, labeling recent talks with an Omani delegation as "constructive."

Market participants triggered an aggressive round of profit-taking, yet analysts warn that structural risks persist. Tanker traffic in the Strait of Hormuz and the Red Sea remains fragile, and freight rates may stay elevated until a durable resolution emerges. Beyond diplomacy, the halt reflects practical constraints; the U.S. bombing campaign had largely exhausted its target list and munitions. Furthermore, with U.S. midterm elections just 100 days away and gasoline prices hovering above $4 per gallon, the administration faces intense domestic pressure to stabilize energy costs. Traders now brace for continued volatility, as any sustained price decline hinges on the restoration of safe maritime shipping lanes.