Oil prices tumbled Sunday after a senior Iranian official told Reuters that Tehran will halt its own attacks as long as the United States keeps its bombing pause in place. The move eased nearly two weeks of escalating conflict.

The price of Brent crude oil fell over 7% to touch a low of $90.9 a barrel. West Texas Intermediate crude oil also dropped as much as 7% to touch $84.

Tehran Sets Conditions for Oil

The Iranian source described Tehran’s stance as “attack for attack.” Iran will stop its operations once the US stops, and Tehran has already passed that message to Washington, according to the official’s account.

“There is more scepticism than optimism about the halt in attacks. The prevailing view is that the pause is tactical rather than genuine.”

The pause follows Washington’s decision to suspend its bombing campaign after 13 nights of US strikes. Advisers reportedly warned President Donald Trump that the military was running low on viable targets. They also raised concerns about depleting weapons stockpiles.

US Ambassador to the United Nations Mike Waltz said Trump chose the pause to give diplomacy room. Iranian officials voiced more doubt than hope that the calm will last.

Fed Watching Inflation Risk

HSBC US rates strategist Dhiraj Narula said pricier oil has revived bets that the Federal Reserve may hold rates higher for longer. He noted inflation expectations have stayed contained so far. Narula credited firm Fed messaging on price stability for that resilience, which has kept the energy rally from feeding into longer-term forecasts.

Brent held near $92 a barrel into Monday, confirming Sunday’s drop stuck rather than snapping back. Whether the halt lasts through the week will test if Tehran’s skepticism proves right, or if the pause turns into lasting de-escalation.

Source: BeInCrypto