Oil prices fell more than 7% after a two-day pause of hostilities in the Gulf.
There have been no reported strikes by either the US or Iran since Friday, despite President Donald Trump’s threat of renewed full-scale assault. Trump’s respite may be forced: The US military is running short of key ordnance and, according to the New York Times, his offensive options are limited.
Despite the calm, the oil markets remain under pressure as Houthi attacks in the Red Sea force tankers to take alternative routes around Africa. Saudi Arabia’s exports are increasingly dependent on the Suez Canal, and must take much longer and more expensive routes to reach Asia, The Wall Street Journal noted.