Brent crude futures fell more than 6% to below $91 per barrel on Monday. West Texas Intermediate dropped to approximately $83.
The decline follows a weekend pause in military hostilities between the United States and Iran. Previous tensions had pushed prices toward $100 per barrel.
Investors now anticipate a diplomatic solution and the potential reopening of the Strait of Hormuz. This shipping lane handles approximately one-fifth of the global oil supply. Transit through the strait remains low despite the halt in attacks.
Lower energy prices pressured oil stocks while boosting the broader equity market. Reduced inflation concerns provided a tailwind for global stocks.