Oil Prices Drop as US and Iran Resume War Negotiations

Global oil prices declined significantly on Monday following a pause in attacks between the United States and Iran. Brent crude dropped 6.3% to $85.87, while U.S. crude fell 7.5% to $82.61, as both nations resumed negotiations to end their war. The conflict had previously disrupted traffic through the Strait of Hormuz, which increased global shipping costs and drove up gasoline prices.

Wall Street stocks ended the day mixed. The Dow Jones Industrial Average rose 0.5%, the S&P 500 climbed less than 0.1%, and the Nasdaq composite fell 0.2%. Investors are currently awaiting earnings reports from major technology companies and a policy update from the Federal Reserve System scheduled for Wednesday.

The Federal Reserve System continues to manage inflation exacerbated by the war and new U.S. tariffs. Markets are currently pricing in a roughly 36% chance that the central bank will implement an interest rate hike this week.