Global crude oil prices fell sharply on Monday after a two-week conflict between the United States and Iran was temporarily halted, raising hopes for a diplomatic solution and more normal shipping through the Strait of Hormuz. Brent crude dropped $4.89, or 5.05%, to $91.89 a barrel, briefly falling below $90 early in trading. US benchmark West Texas Intermediate declined $4.67, or 5.23%, to $84.64 a barrel.

Both benchmarks reached their lowest levels in about a week after rising for three consecutive weeks. Earlier, the spread of conflict in the Middle East and disruption to oil transport through the Strait of Hormuz had pushed Brent to $100 a barrel. The conflict also affected the Red Sea, disrupting supplies from Saudi Arabia to Asia through the Bab al-Mandab Strait.

US Ambassador to the United Nations Mike Waltz said President Donald Trump had decided to pause attacks to allow diplomatic efforts a chance. Shipping has not fully normalized: Kpler data showed fewer than 10 cargo vessels a day transited Hormuz over the weekend. Analyst Saul Kavonic said any recovery in shipping would be gradual and partial because many companies remain cautious about security risks.