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Oil prices fell more than 4% on Monday as easing Middle East tensions and an OPEC+ decision to increase output eased concerns over global supply disruptions.
Mariyam Adheela
An employee refuels a car at a gas station in Kuwait City, Kuwait, on March 10, 2026 -- Photo: AFP
Oil prices fell more than 4% on Monday after signs of easing tensions in the Middle East reduced concerns about disruptions to global crude supplies.
Brent crude futures dropped about 4.6% to around $84 a barrel, while U.S. West Texas Intermediate (WTI) crude fell nearly 4.7% to about $81 a barrel. The sharp decline followed reports that U.S. President Donald Trump had halted plans for military action against Iran and was instead pursuing a diplomatic agreement aimed at reducing regional tensions.
The move eased fears over possible disruptions to oil shipments through the Strait of Hormuz, a key global shipping route for crude exports. Oil prices had surged by more than 20% over the past month amid heightened conflict in the region.
Adding to downward pressure on prices, OPEC+ agreed to increase oil production by about 188,000 barrels per day from September, completing the rollback of voluntary output cuts introduced in 2023.
Despite the latest price drop, analysts cautioned that uncertainty remains, warning that renewed conflict or disruptions to shipping routes could quickly push oil prices higher again.
