Oil Prices Fall as US Iran Tensions Ease

Global oil prices dropped sharply as signs of easing tensions between the United States and Iran raised hopes for a diplomatic breakthrough.

Brent crude fell by more than 9 percent, dropping below 88 dollars a barrel after climbing above 100 dollars last week.

The decline followed comments from the US ambassador to the United Nations indicating that attacks on Iran had been paused to allow room for talks.

Iran also announced that it had halted retaliatory attacks in the region.

The conflict had earlier pushed oil prices higher over fears that the Strait of Hormuz, a key global oil shipping route, could be disrupted.

Analysts say uncertainty remains, but markets are closely watching for signs that both countries can reach a lasting agreement.