Oil Slumps and Markets Finally Get Some Fresh Air

Oil prices slid at Monday’s open, but the bigger market shift came from changing expectations about what happens next in the Strait of Hormuz. After President Donald Trump said the prior ceasefire ended following IRGC attacks on commercial vessels, traders began pricing diplomacy more seriously. Washington did not strike Iran for a second consecutive night, Tehran suspended further military response, and Omani officials sought room for talks. The Associated Press reported both sides want to return to an interim ceasefire deal. This eased the “war premium,” helping equities, currencies, and bonds recover and lowering inflation pressure—though a renewed attack could quickly reverse the move.