The suspension of hostilities between the US and Iran boosts expectations of shipping recovery, causing international oil prices to plummet on Monday.

1. During Monday's Asian trading session, international oil prices fell sharply, with a decline of about 5%. Previously, after two weeks of mutual military strikes between the United States and Iran, both sides paused their attacks over the weekend, raising hopes in the market for easing the conflict through diplomatic means and restoring shipping in the Strait of Hormuz.2. As of around 9:20 a.m. Beijing time, Brent crude oil futures were quoted at $92.46 per barrel, down $4.3 from last Friday's settlement price, a decrease of 4.3%. During intraday trading, prices once fell over 6% to break below the $90 mark, reaching $89.60 per barrel. U.S. West Texas Intermediate (WTI) crude futures were quoted at $85.5 per barrel, down $4 from last Friday's settlement price, a drop of 4.5%. At the start of trading, they fell more than 6% to $83.31. After three consecutive weeks of gains, both major benchmark contracts have pulled back to their lowest levels in nearly a week.3. Previously, as the conflict spread to the Red Sea region, oil transport through the Strait of Hormuz was severely disrupted. Saudi Arabia, the world's largest oil exporter, also faced obstacles in transporting crude oil to Asia via the Bab el-Mandeb Strait, which pushed Brent oil prices up to as high as $100 per barrel.4. U.S. Ambassador to the United Nations, Linda Thomas-Greenfield, said in a media interview that President Trump decided to pause military strikes to allow more room for diplomatic mediation. IG market analyst Tony Sycamore pointed out that the market's expectations for a genuine diplomatic solution are rising. Returning to the framework of the 14-point memorandum of understanding reached in June, and agreeing on clearer arrangements for the management of the Strait of Hormuz, would be a good starting point.5. However, a full recovery of shipping will take time. According to Kpler shipping data, over the weekend, less than 10 bulk commodity vessels passed through the Strait of Hormuz each day. In addition, after Yemen's Houthi forces attacked Saudi oil facilities along the Red Sea coast, the number of vessels passing through the Bab el-Mandeb Strait decreased on Sunday. However, one Chinese very large crude carrier managed to safely navigate the strait and leave the affected area.6. Saul Kavonic, an analyst at MST Marquee, stated that even if transport volumes through the Strait of Hormuz begin to rebound, the recovery process may be slow and limited, as many shipping companies remain cautious and will require further confirmation of security conditions before sending more empty ships through the strait.