Oil prices dropped and US equity futures rose early Monday after the US refrained from striking Iran for a second straight night. The move has eased concerns over potential disruptions to Middle East crude supplies following weeks of escalating conflict.
No strikes have been reported from either side since Friday, leaving oil investors optimistic about a resolution to the conflict. Prices fell further following reports that Iran would suspend attacks as long as a U.S. pause in hostilities remains in place.
Brent fell about 6 per cent toward US$91 a barrel, while West Texas Intermediate dropped below US$84. These declines occurred during early trading after oil prices reached a two-month high last week.
While tensions have eased, the week ahead will have no shortage of challenges for the major averages.