Oil prices fell sharply on Monday after the US and Iran paused military strikes following weeks of escalating tensions around the Strait of Hormuz.
Brent crude dropped almost 5% in early London trading to $86 a barrel, having surged above $100 during the recent conflict.
Markets responded after both sides refrained from further attacks over the weekend, although analysts warned against assuming a lasting recovery while the Strait of Hormuz remains effectively closed to normal shipping.
Helima Croft, head of global commodity strategy at RBC Capital Markets, told the FT: “Even if we have a headline-driven sell-off, we do not see traffic through Hormuz normalising anytime soon and now we have the added Red Sea problems.”
FSTE100
The UK's flagship share index, the FTSE 100, was up 29-points at 10,766 shortly after opening this morning.
Brent crude oil futures were down 5.84%, sitting at $86.31 a barrel this morning.
Companies reporting today
- AstraZeneca - Q2 Results
- Cranswick - Q1 Trading Statement
- Vodafone - Q1 Trading Statement