Global oil prices dropped about 7% on Monday following a temporary three-day pause in cross-border strikes between the United States and Iran. The lull in military action came after 13 straight nights of heavy exchanges that had disrupted energy markets and raised fears of a broader conflict.
International benchmark Brent crude fell below $90 a barrel in morning trading, while U.S. crude dropped to around $83 a barrel. Equity markets moved higher in response, with Nasdaq 100 futures rising 1.4% and S&P 500 futures gaining 1%.
Technology and artificial intelligence stocks led the stock rally as investors weighed the possibility that lower energy costs could ease inflation pressures. Meanwhile, U.S. Treasury yields saw a slight decline, staying close to their highest levels since early 2025.
The brief stand-down follows days of military escalation across key Middle Eastern maritime corridors. President Donald Trump said Thursday that he was considering a “massive attack” aimed at breaking Iran’s control over the Strait of Hormuz. However, both nations have avoided direct strikes over the past three days.
U.S. Ambassador to the United Nations Mike Waltz confirmed on NBC’s “Meet the Press” on Sunday that the pause was intentional. RELATED: Waltz Refuses Timeline On Iran Conflict, Ties Saudi Nuclear Deal To Israel Normalization
“What the president is doing right now, as we’ve seen all along, is giving some talks some space,” Waltz said, noting that discussions were ongoing despite “internal fighting” within the Iranian leadership. Waltz also dismissed reports that U.S. munition stockpiles were running low.
Iranian officials offered a different view of the diplomatic situation. During a Monday news conference, Foreign Ministry spokesman Esmaeil Baghaei stated that Tehran is not directly negotiating with Washington.
“Mediators may convey messages from the American side to us concerning regional developments, but at the present time we have no negotiations with the American side,” Baghaei said. He added that Iran would “never allow America to determine the timing of war and peace” and maintained that the Strait of Hormuz remains “closed.”
Maritime tracking data show that commercial traffic through the regional chokepoints remains subdued. According to a MarineTraffic analysis, only 29 verified vessel transits occurred through the Strait of Hormuz between Friday and Sunday—dropping from 12 on Friday to six on Saturday, before picking up to 11 on Sunday. Historically, roughly 20% of the world’s petroleum supply passes through this waterway.
Traffic through the nearby Bab el Mandeb Strait remained steadier, recording 100 total transits over the same three-day stretch, averaging around 33 to 35 ships per day.
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