Oil slumped at Monday’s open as traders reassessed Middle East supply risk after
the US and Iran paused reciprocal strikes. Brent futures fell about 6% to near
$91/bbl and WTI dropped below $84/bbl. European gas slid as much as 7.8%. The US
suspended strikes late Friday after 13 days of operations; Iran’s army said
Tehran had paused its responses. Yemen’s Houthi movement said it struck ARAMCO
facilities at Jazan and Yanbu on Saturday; Riyadh and ARAMCO did not immediately
confirm. The conflict has spread from the Strait of Hormuz to the Red Sea; Brent
is up roughly 30% this month and briefly topped $100/bbl last week. The near
five-month-old hostilities, thin global spare capacity and rising
refined-product prices have intensified concerns about upward pressure on global
inflation, and markets questioned the US administration’s next move.
