Global oil prices fell more than 5 per cent on Sunday as the US and Iran paused strikes over the Strait of Hormuz. Brent crude dropped to $91.87 in Asian opening trades after two weeks of hostilities that had pushed prices past $100 a barrel.

US ambassador to the UN Mike Waltz said President Donald Trump was “giving the talks some space” before deciding on resuming strikes. The strait carries about a fifth of world oil and gas; its closure has pressured petrol prices, now averaging $4.11 per gallon, up from under $3 before the conflict began in February.

Analysts warned against expecting further declines. Helima Croft, head of global commodity strategy at RBC Capital Markets, said a pause does not mean “start your engines” for two‑way shipping, and Red Sea tensions with Houthis add risk. Inflation rose to 4.1 per cent, double the Fed’s 2% target, prompting speculation of a rate rise; Fed funds target remains 3.5‑3.75 per cent.

Bets on a Fed rate hike fell slightly to 36.3% on Sunday. Jonathan Millar, economist at Barclays, expects the FOMC to stay on hold despite higher energy prices.