Global oil prices dropped on Monday after Iran reportedly pledged to suspend attacks as long as the United States paused its offensive military operations in the Middle East.

Brent, the global benchmark for oil prices, fell 7.6 per cent to around $89.43 per barrel, while its U.S. counterpart, West Texas Intermediate (WTI) crude, dropped 6.7 per cent to $83.37 per barrel.

On Sunday, U.S. ambassador to the United Nations (UN), Mike Waltz, in an interview with news outlet Fox News, said the pause in strikes was to “give diplomacy some space”.

The latest phase of ceasefire reportedly followed 13 days of consecutive airstrikes by the U.S.

Reuters reported that an unnamed Iranian official said Iran was ready to stop its counterattacks as long as the U.S. refrained from launching airstrikes.

Per the report, the official stated that Iran’s position remained ‘attack for attack’. 

“If the attacks stop, Iran will also halt its operations. That message has already been conveyed to the United States,” the unnamed official was quoted as having said.

The U.S. ceasefire particularly followed a recommendation by U.S. military commander in the Middle East, Brad Cooper, who warned that the military campaign around the Strait of Hormuz had reached the limit of its effectiveness. 

The commander’s advice, alongside recommendations from other senior officials, reportedly influenced President Donald Trump’s decision on Friday to pause U.S. strikes against Iran.

Earlier, on July 23, the Peoples Gazette reported that global oil prices surged to as high as $98 per barrel after Iran-backed Houthi militia claimed responsibility for attacking two Saudi oil tankers in the Red Sea region.

At the time, Brent crude oil prices rose by 4.37 per cent to $98.18 per barrel, while West Texas Intermediate rose by 3.63 per cent to $89.98 per barrel.