As America and Iran stop their attacks, oil prices are falling.

Oil prices fell more than 9% on Monday on hopes that a ceasefire between the United States and Iran would help resolve the conflict.

Brent Crude, which has fallen below $88 per barrel, has risen above $100, showing a significant change compared to last week.

The decline came after the US ambassador to the United Nations announced that the attack on Iran had been halted for the second night in a row. To give “some space for conversations”..

An Iranian military spokesman said on Sunday that Tehran had halted “retaliatory” strikes in the region in response.

The outbreak of the Iran war has caused a sharp rise in oil prices, with the conflict effectively closing the Strait of Hormuz, a major shipping route that usually carries 20% of oil and liquefied natural gas (LNG).

When Iran and the United States signed a memorandum of understanding in June to end hostilities and reopen the pipeline, oil prices fell to a prewar low of $70 a barrel.

However, the collapse of a ceasefire deal earlier this month has fueled fears over global energy supplies and sent oil prices rebounding.

last week It reached 100 dollars per barrel The threat rose for the first time since May after Yemen’s Houthi rebels attacked oil tankers in the Red Sea, threatening a key export route used by Saudi Arabia to pass through the Strait of Hormuz.

Suzanne Streeter, chief investment strategist at Wealth Club, said markets were “cautious in terms of changes during this conflict.”

Despite crude’s sharp decline, “there is still considerable uncertainty around these prices and whether negotiations will lead to sustained success.”

The conflict between the US and Iran – and its impact on oil – has seen the price of fuels such as petrol and diesel rise in many countries.

This often affects other prices, such as food, as businesses pass on the higher costs they face to consumers, and this can drive up inflation.