Crude oil prices fell more than 3% to below $82 a barrel on Monday, deepening a 2.4% decline from the previous session, as investors weighed signs of easing tensions between the US and Iran. Pakistan’s army chief visited Tehran in a bid to support diplomatic efforts, while Qatar indicated it was continuing its mediation initiatives. In addition, reports that Washington may soon return evacuated diplomats to the region suggested that a broader military escalation could be less likely in the near term.
At the same time, the latest US measures aimed at increasing economic pressure on Iran were milder than markets had expected. US Treasury Secretary Scott Bessent said countries doing business with Tehran would be given a deadline to unwind their ties or face unilateral penalties. Despite these steps, significant volumes of crude are still flowing through the Strait of Hormuz, with some shipments moving in a more discreet manner.
