Iran experienced its third consecutive night without US strikes after both sides announced a suspension of attacks and the US ambassador to the UN confirmed that President Donald Trump had decided to give talks “some space,” a development that led to a drop in oil prices on Monday.

Tehran said it had halted retaliatory attacks against Washington’s allies in the Middle East, and US ambassador to the United Nations Mike Waltz told ‘Fox News Sunday’ that, while forces remained ‘locked and loaded’, Trump would give negotiations ‘a little bit of room’.

Fighting over the strategic Strait of Hormuz derailed diplomatic efforts between Washington and Tehran, triggering a US air campaign and Iranian reprisals that expanded the conflict to shipping lanes, Gulf allies and military bases across the region.

Prior to Friday, the US military had carried out strikes on Iran for 13 consecutive nights, in the largest rekindling of the almost five-month-old war since an April ceasefire. But Friday, Saturday and Sunday nights passed without bombing.

“Since… our strategy has essentially been retaliatory, we have also halted our retaliatory operations,” said Iran’s army spokesman Mohammad Akraminia.

Oil prices tumbled on Monday as investors breathed cautious sighs of relief at the pause in combat.

The price of a barrel of international benchmark North Sea Brent crude shed more than 7% at one point early Monday to briefly drop back below $90, while US counterpart West Texas Intermediate was down 4% at $85.45 a barrel.

Meanwhile, unconfirmed Iranian media reports said an oil tanker had been damaged by a sea mine in the Strait of Hormuz.

Iran’s Revolutionary Guards navy stopped six vessels attempting to transit the strait through routes not approved by Iranian authorities, state television reported on Monday.

“Last night, six vessels that attempted to transit through a route other than the designated one were stopped by the IRGC Navy with warning shots and turned back,” a state television correspondent reported from the Gulf. Earlier state TV said one vessel was involved in an “incident,” without elaborating.

On Saturday, the Guards said they had stopped four vessels attempting to transit through the southern part of the strait after firing warning shots.
Iran has effectively blockaded the Strait of Hormuz since the start of the Middle East war in late February. (AFP)