Crude oil prices have experienced a sharp decline, dropping 6% as market fears over geopolitical tensions ease. This follows reports that Iran has indicated it will cease its attacks if the United States also ends its military operations.

The international benchmark, Brent crude futures for September delivery, fell 6% to trade around $90.97 per barrel. Similarly, US West Texas Intermediate (WTI) crude futures for September also dropped 6% to $83.83 per barrel.

A senior Iranian official, speaking to media on Sunday, disclosed that Tehran has signaled its readiness to stop attacks provided the US halts its military strikes. This stance was communicated to Washington.

The move comes after US President Donald Trump’s advisors cautioned that the US military had limited viable targets and expressed concerns over depleting weapons stockpiles. Following these warnings, Washington decided to temporarily suspend its bombing campaign.

According to the Iranian official, Tehran’s position remains one of reciprocal action: "attack for attack." Consequently, Iranian military operations will end once the attacks cease. This message has been relayed to the US side.

US Ambassador to the United Nations, Mike Waltz, stated on Sunday that President Trump chose to pause the strikes in order to create space for diplomatic efforts.

Diraj Narula, a US interest rate strategist at HSBC, noted that the rise in oil prices had initially fueled market expectations that the Federal Reserve might need to maintain a tighter policy for a longer period. However, he pointed out that despite the surge in energy costs, inflation expectations remain relatively manageable.

He attributed this stability to repeated assurances from Federal Reserve officials that they are committed to price stability, aiming to prevent the current oil price shock from affecting long-term inflation expectations.